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Rent-to-Income Ratio Calculator
Enter your monthly income before tax and the rent. You get the ratio, the rent that fits the 30% guideline and the income a landlord may ask for.
| Share of income | Monthly rent |
|---|---|
| 25% | $1,250 |
| 30% | $1,500 |
| 33% | $1,650 |
| 40% | $2,000 |
Example
$1,600 of rent on $5,000 of monthly income is a ratio of 32%. The 30% guideline gives $1,500 of rent for that income, and a rent of $1,600 calls for $5,333.33 a month.
How the rent-to-income ratio calculator works
The ratio is rent divided by income before tax: rent-to-income = monthly rent / monthly gross income.
A common guideline is to spend no more than 30% of gross income on rent. Many landlords apply a similar test from the other side, asking for a yearly income of 40 times the monthly rent, or a monthly income of three times the rent.
These rules are rough. They ignore debts, family size and local prices, so use them to compare options and check the result against your real budget.
Common questions
Is the 30% rule based on income before or after tax?
Before tax. Because of that, 30% of gross income can be 40% or more of take-home pay, which is worth checking in a budget.
Should I include bills in the rent?
The traditional rule uses rent only. Adding utilities gives a more complete picture of housing costs, and some versions of the guideline include them.
What if my ratio is above 30%?
That is common in expensive cities. It works if other costs are low, for example with no car or no debt. If money is tight, sharing or a longer commute are the usual trade-offs.