Rent to Income Ratio Calculator
Find out what percentage of your income goes to rent. Enter your monthly rent and gross monthly income to see your rent to income ratio and whether it meets the common 30 percent guideline.
How to calculate rent to income ratio
- Enter your monthly rent.
- Enter your gross monthly income (before taxes).
- Read the ratio and see the maximum rent at 30 percent of income.
Examples
1,500 rent on 5,000 income
Monthly rent 1,500, gross monthly income 5,000
Ratio 30%, which passes the 30 percent rule
Frequently asked questions
What is the rent to income ratio?
It is your monthly rent divided by your gross monthly income, shown as a percent. Landlords and budgets often use it to gauge whether rent is affordable relative to earnings.
What is the 30 percent rule?
A common guideline that you should spend no more than 30 percent of gross income on rent. At 5,000 a month, that caps rent at 1,500. It is a rule of thumb, not a strict requirement.
Should I use gross or net income?
This calculator uses gross monthly income, meaning your pay before taxes and deductions. Many landlords screen on gross income, though budgeting on net income gives a stricter, more realistic view.
Is a lower ratio always better?
A lower ratio leaves more room for savings, debt and other costs, which is generally healthier. The right level depends on your other expenses and your local cost of living.
Do landlords require a certain ratio?
Many landlords look for gross income of about three times the rent, which is a ratio near 33 percent or lower. Requirements vary, so check with the specific landlord or property.
Related tools
Rent Increase Calculator
Calculate your new rent after a percentage increase. Enter the current rent and the raise to see the new monthly rent, the dollar increase and the yearly cost.
Home Affordability Calculator
Find out how much house you can afford. Enter income, debts, down payment and rate to estimate your max home price, loan amount and monthly payment.
Debt-to-Income Calculator
Calculate your debt-to-income (DTI) ratio. Enter monthly income, housing payment and other debts to see front-end and back-end DTI and how lenders view it.
401(k) Calculator
Project your 401(k) balance with employer match. Enter salary, contribution, match and return to see your contributions, the match and growth over time.
50/30/20 Budget Calculator
Split your monthly take-home pay with the 50/30/20 rule. See dollar amounts for needs, wants and savings each month and year. Free and private.
Amortization Schedule Calculator
Build a full loan amortization schedule. Enter the amount, rate and term to see each month's payment, principal, interest and balance, plus total interest.