The classic guideline is to spend no more than 30% of gross income on rent; many landlords also require income of 3 times the rent. In expensive cities many renters exceed this – which leaves less room for saving.
How to use the Rent Calculator
- Gross monthly income
- Take-home monthly income
- Monthly savings
- Monthly debt payments
- Other monthly expenses
- Rent to check
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter your gross and take-home monthly income, monthly savings target, debt payments and other expenses, and a rent to check.
Tips
- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.
Common mistakes to avoid
- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.
Inputs explained
| Field | What to enter |
|---|---|
| Gross monthly income | Amount in your currency |
| Take-home monthly income | Amount in your currency |
| Monthly savings | Amount in your currency |
| Monthly debt payments | Amount in your currency |
| Other monthly expenses | Amount in your currency |
| Rent to check | Amount in your currency |
What each result means
- Affordable rent – budget method = max([Take-home monthly income] – [Monthly savings] – [Monthly debt payments] – [Other monthly expenses], 0)
- Affordable rent – 30% rule = [Gross monthly income]×0.3
- Rent-to-income ratio for the rent checked = [Rent to check]÷[Gross monthly income]×100
- Income required by the 3× rule = [Rent to check]×3
- Annual income required by the 40× rule = [Rent to check]×40
Example values
How the main result changes when Gross monthly income changes and everything else stays at the example values above:
| Gross monthly income | Affordable rent – budget method |
|---|---|
| 3,000 | 1,900 |
| 4,500 | 1,900 |
| 6,000 | 1,900 |
| 7,500 | 1,900 |
| 9,000 | 1,900 |
| 12,000 | 1,900 |
Formula
Affordable rent (budget method) = income − savings − debt payments − other expenses30% rule: rent ≤ 30% of gross monthly incomeRent-to-income ratio = rent ÷ gross monthly incomeWorked example
Inputs — Gross monthly income: $6,000; Take-home monthly income: $4,600; Monthly savings: $600; Monthly debt payments: $400; Other monthly expenses: $1,700; Rent to check: $1,800.
Results — Affordable rent – budget method = $1,900.00; Affordable rent – 30% rule = $1,800.00; Rent-to-income ratio for the rent checked = 30 %; Income required by the 3× rule = $5,400.00; Annual income required by the 40× rule = $72,000.00.
Frequently asked questions
How much rent can I afford?
Commonly 30% of your gross monthly income.
What is the 40× rule?
Some landlords require annual income of 40 times the monthly rent.
Should I use gross or net income?
The 30% rule uses gross; budgeting from take-home pay is more realistic.
What formula does the Rent Calculator use?
Affordable rent (budget method) = income − savings − debt payments − other expenses.