The formula
How it works
Work out how much rent you can comfortably afford from your income, using the common rule that rent should take up no more than about 30% of your gross monthly pay. Slide the percentage to see a range.
FAQ
Why 30%?
The “30% rule” is a long-standing guideline that spending more than about a third of your gross income on rent leaves too little for everything else. It is a rough guide, not a hard limit — high earners can often afford more, and it varies by city.
Should I use gross or net income?
Landlords and the 30% rule usually work from gross (pre-tax) income, and many require your annual rent to be a certain multiple of it. For your own budgeting, checking rent against take-home pay gives a more realistic picture.
Does the affordable rent figure include utilities and renters insurance?
No, it only covers the rent payment itself. Utilities, renters insurance, and parking or storage fees are extra, so it is wise to leave some room below the 30% figure if those costs are significant.
What is the 40x rule some landlords use?
It requires your annual gross income to be at least 40 times the monthly rent — for example $60,000 a year to qualify for $1,500 rent. It is roughly equivalent to the 30% guideline, just expressed as an income multiple instead of a percentage.
How does location change what percentage I should target?
In expensive cities, many renters end up spending well above 30% simply because incomes have not kept pace with rents, while in lower-cost areas staying near 25% is often realistic. Treat 30% as a national average, not a rule that fits every market.
Should existing debt payments change how much rent I budget?
Yes — if you carry significant student loan, car, or credit card payments, aiming below 30% leaves more breathing room, since those obligations compete with rent for the same income. Lenders and landlords increasingly look at total debt-to-income, not rent in isolation.
How does splitting rent with roommates affect the calculation?
Run the calculator using only your own share of the rent against your own income, not the total household rent. That gives an affordability check that matches what you are actually responsible for paying each month.
About the rent calculator
This calculator estimates how much rent you can afford, based on your income and the share of it you are willing to spend on housing. Rent is usually the biggest single item in a budget, so getting the figure right matters: too high and money is tight every month, too cautious and you may pass up somewhere you could comfortably have. The widely used 30% rule gives a sensible starting point that this tool makes concrete.
How to use it
Enter your gross monthly income and slide to the share of it you want to put toward rent. The calculator shows the monthly rent that matches, plus what a more conservative and a more aggressive percentage would allow. For example, on $5,000 a month the 30% rule suggests around $1,500 of rent, with roughly $1,250 at a cautious 25% and $1,750 at a stretched 35%. Adjust the slider to match your own priorities.
The formula
Affordable rent is simply your income times the share you allocate to it: , where is the percentage. The 30% rule sets . Some landlords flip this around and require that your annual gross income be at least 40 times the monthly rent, which works out to roughly the same 30% guideline. Lower percentages leave more room for savings and other costs.
Where it is used
Renters use it to set a realistic budget before flat-hunting, so they only view places they can actually afford. Landlords and letting agents apply income-multiple rules when screening tenants, and budgeting apps build the 30% guideline into their advice. It pairs naturally with a full budget calculator, since rent is the anchor around which the rest of a monthly budget is planned.