Stepped Fixed Escalation Vs CPI Calculator

Fixed and CPI escalations behave differently. This calculator compares.

Base annual rent

Fixed escalator %

CPI forecast %

Lease years

Total rent — fixed

$1,604,943

Total rent — CPI

$1,665,348

Fixed vs CPI difference

-$60,405

How the math works

Each year's rent = base × (1 + rate)^i. Sum for total.

On $140k base over 10 years: 3% fixed total = $1.60M. 3.8% CPI total = $1.68M. Tenant pays $76k more under CPI path. Who wins depends entirely on which forecast materializes — neither regime is inherently better, but landlords usually capture upside in rising-inflation regimes.

How to Use

Enter base rent.
Enter fixed escalator %.
Enter CPI forecast %.
Enter lease years.
Read total rent under each regime.

Frequently Asked Questions

Fixed escalator?

Landlord certainty: 3% fixed means known rent path. Tenant certainty: same. Decoupled from inflation. Low CPI: landlord wins (gets more than CPI). High CPI: tenant wins (pays less than CPI). Most common in multi-tenant office.

CPI-indexed?

Rent moves with inflation. Protects both sides in real terms. But exposes to CPI spike risk. Long leases: CPI better for landlord (decades of inflation protection). Shorter leases: fixed simpler and close enough.

Hybrid?

Higher of 3% fixed or CPI: landlord-favored (captures upside both ways). Lower of 3% or CPI: tenant-favored. Mid-market: 50/50 fixed vs CPI. Enterprise: lean toward CPI-bounded (floor and ceiling).