The first step to know how to calculate CPI increase for commercial lease, is to determine the base CPI. This is typically the CPI value at the time the lease was signed or the last CPI value used to adjust rent. Check the most recent CPI figure, which is usually published by the government’s statistical office (e.g., the Ministry of Statistics and Programme Implementation in India).
How to Calculate CPI Increase on Commercial Rent?
The formula for calculating the CPI increase is:
CPI Increase Percentage = (Current CPI−Base CPI/Base CPI) × 100
For example, if the base CPI is 200 and the current CPI is 210, the increase would be:
CPI Increase Percentage = (210−200/200) × 100=5%
This means the rent would increase by 5%.
Once you’ve calculated the CPI increase percentage, multiply it by the current rent amount to determine the new rent. For example, if the rent is Rs. 50,000 and the CPI increase is 5%, the new rent would be:
New Rent= Rs. 50,000+(Rs. 50,000×0.05)=Rs. 52,500
This is
how to calculate CPI increase for commercial lease.
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How to Calculate CPI Increase for Commercial Lease?
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2024-11-26T18:43:23+00:00 2024-11-26T18:43:23+00:00Comment
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