Calculator
Construction Input Index Calculator
How much indexation is expected on a payment to a contractor, based on the change in the index.
When buying an apartment from a developer, a large part of the payments is linked to the construction input index - so the amount you actually pay at each milestone is higher or lower than the original amount in the contract, according to the change in the index. The calculator shows how much indexation is expected on a particular payment.
The latest index can be checked on the Central Bureau of Statistics website - the index is published once a month.
Index change
+8.50%
Indexation addition to the payment
+₪42,500
Actual amount to pay
₪542,500
The result is a computational estimate only, based on two index values entered manually. Verify the exact index and the determining date against the purchase contract.
How the calculator works
You enter the amount of the linked payment, the construction input index in force on the date the contract was signed (stated in the contract itself), and the latest known index. The calculator computes the percentage change between the two indices and the addition in shekels on the amount.
The formula behind the calculation
Indexation addition = payment amount × ((current index ÷ base index) - 1). The index is published once a month by the Central Bureau of Statistics.
What the calculator does not include
It does not cover cases of an average index or a contractual lagging index (the known index versus the actual index) that appear in some contracts
It does not calculate late-payment interest in case of a delayed payment
The exact index depends on the determining date set in the specific contract - check it against the contract
Why it matters
Buyers from developers are often surprised by the gap between the amount they planned to pay and the amount that actually appears in the payment demand, because of index linkage they did not follow. Understanding the linkage mechanism in advance allows you to prepare your budget correctly throughout the construction period.
Frequently asked questions
Where do I check the latest construction input index?
The index is published every month on the website of the Central Bureau of Statistics, and is also reported in the financial press around the publication date.
Which payments are subject to index linkage?
This is set in the contract with the developer - usually all payments in the agreed payment schedule are index-linked, from signing until the apartment is handed over.
What is the difference between the construction input index and the consumer price index?
The construction input index tracks the costs of raw materials and labor in the construction industry only, so it can move differently from the general consumer price index. A purchase from a developer is usually linked to the specific construction input index, not the general one.
Can index linkage be avoided when buying from a developer?
Usually not - it is a standard mechanism in developer purchase contracts. It is important to understand it in advance and plan accordingly, and not to expect the final payment to be identical to the price set in the original contract.
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