Rent Affordability Calculator
Before you start your apartment search, it's crucial to know your budget. This calculator helps you determine a reasonable monthly rent based on your income, following a common financial guideline.
Your Recommended Budget
How It's Calculated
The Rent Affordability Calculator uses the widely recognized "30% rule" to estimate how much rent you can reasonably afford based on your income. This rule suggests that no more than 30% of your monthly gross income should go toward housing costs, including rent and sometimes utilities. Many landlords, property managers, and mortgage lenders use this benchmark as a quick way to assess financial stability and rental eligibility.
The formula is simple:
Monthly Income = Annual Income ÷ 12
Affordable Rent = Monthly Income × (Percentage ÷ 100)
By default, the calculator applies the 30% rule, but you can adjust the percentage to better reflect your financial goals or local housing market. For example, in expensive cities, spending 35–40% on rent may be unavoidable, while in lower-cost areas, you may be able to stay well under 30% and free up more money for savings, debt repayment, or lifestyle expenses.
This calculation gives you a starting point, but it’s important to also consider other financial commitments such as student loans, car payments, childcare, or retirement contributions. A rent that looks affordable on paper may feel overwhelming if your other obligations are high.
Frequently Asked Questions
Is the 30% rule always accurate?
Not necessarily. The 30% rule is a general guideline, not a one-size-fits-all solution. In high cost-of-living cities like New York or San Francisco, renters often spend 40% or more of their income on housing. On the other hand, if you have significant debt or are working toward big savings goals, you may want to keep housing closer to 20–25% of your income. The calculator helps you visualize both scenarios.
Should I use my gross or net income?
This calculator is based on gross income (your earnings before taxes and deductions), because landlords and property managers typically qualify tenants using gross income. However, for your personal budgeting, it’s wise to also calculate affordability using net income (after-tax pay). This ensures you still have enough money left for food, transportation, healthcare, and savings.
Does this include utilities and other housing costs?
Some landlords include utilities like water, gas, or trash in the rent, while others don’t. The 30% rule generally refers only to rent, but a more accurate measure of affordability should include all housing costs: rent, utilities, renters insurance, and any building fees. Be sure to add these when budgeting.
What if I spend more than 30% on rent?
Spending over 30% isn’t always bad—it depends on your overall financial situation. If you’re debt-free and have strong savings, you may be able to safely spend more on housing. But if you’re living paycheck to paycheck, going beyond 30% can make it harder to cover unexpected expenses or save for future goals.
How can I lower my rent-to-income ratio?
Consider options like getting a roommate, moving to a less expensive area, negotiating your rent with your landlord, or reducing other expenses so that housing takes up a smaller share of your budget. Even a small change can improve your financial flexibility.