Rent increase calculator

How the calculator works

The new rent is the current rent plus the yearly percentage, worked out exactly to the paisa and then rounded once to the step you choose, with a half rounding up. Later years add the same percentage to the rounded rent of the year before, which is how a landlord who rounds each year arrives at the next figure.

Rounding is a convention, not a rule of law: the Maalik-e-Makaan app suggests the new rent rounded to Rs 100, and you can choose another step here. The calculator uses the same arithmetic as the app, checked against the same test cases.

What the law says about yearly increases

The increase that applies is, first of all, the one in your written agreement. What happens when the agreement is silent differs by place:

• Islamabad. Since the Islamabad Rent Restriction (Amendment) Act 2021, the rent of a residential or commercial building increases automatically by 10% at the end of every year of the tenancy, unless the landlord and tenant agree in writing to a different increase, or to none.
• Punjab. We found no default increase in the Punjab Rented Premises Act 2009. Section 6 expects the agreement itself to state the “rate of enhancement”, so write it in.
• Sindh. Under the Sindh Rented Premises Ordinance 1979, an increase both sides agreed is binding, although either side can still apply to the Rent Controller to fix a fair rent (Supreme Court, C.P. 492-K/2023). Where the Rent Controller has fixed a fair rent, it cannot be raised for three years, and then by no more than 10% a year.
• Khyber Pakhtunkhwa. The West Pakistan Urban Rent Restriction Ordinance 1959 still applies in urban areas; an increase in a fair rent fixed under it may not exceed 25% of the rent being paid.
• Balochistan. We could not confirm from an official text which rent law applies, so we do not state a rule.
• Cantonment areas. Premises in a cantonment, which includes large parts of Lahore, Karachi, Rawalpindi, Peshawar and Quetta, come under the Cantonments Rent Restriction Act 1963 instead of the provincial law. Section 7(5) bars a unilateral increase within three years, and the Supreme Court has held that periodic increases written into the agreement are part of the rent (Supreme Court judgments; an unofficial copy of the Act). We are only moderately sure of this: we could not read an official text of the Act or the full judgment.

The calculator starts at 10% because it is the Islamabad default and the app’s default. Change it to the rate in your agreement.