Rent Affordability Calculator
The rent your income supports at a rent-to-income share you choose, the income-to-rent test some landlords use, and what is left once other debts are paid.
Result…
How it's calculated
Monthly income = yearly income ÷ 12 Rent by share = monthly income × share % Rent after debts = monthly income × limit % − debts Affordable rent = the smaller of the two Landlord test: most rent = yearly income ÷ multiple; income needed = multiple × rent
A common way to size rent is to keep it to a share of gross income, often quoted as 30%. Some landlords instead ask that yearly income is a multiple of the monthly rent, such as 40 times. Other debts matter too, so this also keeps rent and debts together under a limit you choose and gives the smaller answer.
Your numbers, step by step
About the Rent Affordability calculator
This rent affordability calculator turns your income into a monthly rent you can afford. Enter gross income per month or per year and the share of it you are willing to spend on rent; 30% is a common guideline, but you choose. It also checks your other monthly debt payments, keeping rent and debts together under a limit you set, and gives the smaller of the two answers. Many landlords use a different test: yearly income of a multiple of the monthly rent, such as 40 times. The calculator works that test both ways, the most rent your income passes and the income a flat or house you have in mind would need. Rules of thumb differ by landlord and country, so every number is yours to change, and each step shows the sum.
How to use it
- Choose whether the “Income entered” is per month or per year, then enter your “Gross income” before tax.
- Set the “Rent-to-income share” you want to stay within, such as 30%.
- Enter your “Other monthly debt payments” and the “Limit for rent plus debts”.
- Enter the multiple in “Landlord income test” and, if you have one in mind, the “Rent you're looking at”.
- Read the rent you can afford and whether the rent you are looking at passes the landlord test.
Worked example
A gross income of 48,000 a year is 4,000 a month. At 30%, rent would be 1,200. With 600 of other debt payments and a 40% limit for rent and debts together, 4,000 × 40% − 600 = 1,000, so the affordable rent is the smaller, 1,000 a month. By the 40 × rent test the most rent is 48,000 ÷ 40 = 1,200, while a 1,300 rent needs 52,000 a year and is 32.5% of income.
Updated
Questions people ask
How much rent can I afford on my salary?
Multiply your gross monthly income by the share you want to spend, for example 30%. Then check that rent plus your debt payments stays under a limit you are comfortable with, and take the smaller answer.
What does 40 times the rent mean?
Some landlords ask that your yearly gross income is at least 40 times the monthly rent. So a 1,500 rent needs 60,000 a year, and an income of 60,000 passes rents up to 1,500. Landlords use different multiples, and some use net income.
Is the 30% rule the same everywhere?
No. It is a rule of thumb, not a law, and where rents are high many people spend more. Agencies, housing programmes and landlords set their own limits.
Should I use gross or net income for rent?
This calculator uses gross income, as most rules of thumb do. If your take-home pay is much lower after tax and deductions, try a smaller share to leave room for bills.
What is left out of this rent estimate?
Utilities, insurance, deposits, fees and saving. Leave room for them, and talk to a money adviser if your budget is tight. To weigh renting against owning, try the rent vs buy calculator, and see your full picture with the debt-to-income ratio calculator.