Rent affordability calculator
Landlords and budget guides usually cap rent at 30% of gross income. Enter your income to see the rent that rule allows, a stricter 25% figure, and what remains each month.
A budgeting heuristic based on gross income; your own fixed costs may differ.
How this calculator works
The 30% rule is a screening heuristic, not a law: it keeps rent low enough that utilities, food, transport, savings and debt payments fit in the rest. In expensive cities many renters exceed 30%, which is why the 25% figure is shown — it is the level at which saving becomes comfortable.
Lenders use a related ratio, the debt-to-income ratio: total monthly debt including the proposed rent should stay under about 36-43% of gross income for a mortgage application.
The formula
affordable rent = gross monthly income × rent share
at 25% = gross monthly income × 0.25
left over = income − rent − other debtsOn $5,000 a month, the 30% rule allows $1,500 rent; at 25% it is $1,250. With $400 of other debt, the 30% case leaves $3,100 for everything else.
Worked example
At 30 of income your rent budget is $1,500 a month ($18,000 a year); a stricter 25% budget is $1,250. After rent and other debts you have $3,100 left each month.
Common mistakes
- Using net income. The rule uses gross income; applying it to take-home pay overstates what you can afford.
- Forgetting utilities and parking. Add 15-25% on top of rent for utilities, internet and any parking or pet fees.
- Ignoring a rent increase. Budget for the renewal, not just the first-year rent.
Frequently asked questions
Is the 30% rule realistic?
In high-cost cities many households pay 35-50%. The rule is a starting point; what matters is whether the remainder covers essentials and savings.
Should I include utilities in the 30%?
Ideally yes — the figure should cover housing costs, not just the rent cheque.
How do landlords check affordability?
Commonly they want gross monthly income of 2.5-3 times the rent, plus a credit check.
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