Rent Affordability Calculator
Find out if your rent is eating too much of your income using the 30% rule and see your ideal rent range.
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Is your rent eating too much of your income? This calculator tells you instantly. Enter your monthly gross income and your rent — you will see your rent-to-income ratio, how it compares to the standard 30% rule, and how much money you have left each month after rent. The 30% rule says housing costs should not exceed 30% of gross income. This benchmark has been used by landlords, lenders, and financial advisers for decades, though it is increasingly difficult to achieve in high-cost cities. Knowing your actual ratio gives you a concrete starting point for deciding whether your current rent is sustainable or whether finding a cheaper place or increasing income is necessary. Note that gross income is used here, not take-home pay. If your rent takes up 30% of your gross but 40% of your after-tax income, the real picture is tighter than the rule suggests.
How to Use the Rent Affordability Calculator
The Rent Affordability Calculator is designed to give you an accurate answer in seconds. Follow these steps:
- 1Enter your monthly gross income in the Monthly Gross Income field. The minimum value is 0. The default is $5000. Adjust this to match your specific situation.
- 2Enter your monthly rent in the Monthly Rent field. The minimum value is 0. The default is $1500. Adjust this to match your specific situation.
- 3Click Calculate to see your results instantly. The output updates as soon as you submit.
No account or sign-up required. All calculations run locally in your browser — nothing is stored or transmitted to any server.
Example Calculation
Here is what the Rent Affordability Calculator produces with its default values. Change any input above to recalculate instantly for your own figures.
Inputs
- Monthly Gross Income$5000
- Monthly Rent$1500
Results
- Rent as % of Income30.0%
- 30% Rule Max Rent$1500
- Income After Rent$3500
How It Works
Rent % = (Monthly Rent ÷ Monthly Income) × 100
Formula: Rent % = (Monthly Rent ÷ Monthly Income) × 100 The percentage shows where you stand relative to the 30% benchmark. Below 30% is considered affordable by most standards. Between 30–40% is a grey zone — manageable but limiting. Above 40% is the financial "cost-burdened" threshold defined by the US Department of Housing and Urban Development (HUD). Example: $5,000/month income, $1,500/month rent. Rent % = ($1,500 ÷ $5,000) × 100 = 30% — right at the benchmark. Max affordable rent at 30% = $5,000 × 0.30 = $1,500. Income after rent = $5,000 − $1,500 = $3,500. The 30% rule is a guideline, not a law. In expensive cities like New York, San Francisco, or London, 35–45% of income on rent is common and may be unavoidable. The key question is whether the remaining income after rent covers essential expenses (food, transport, utilities, insurance) with enough left for savings.
Frequently Asked Questions
What is the 30% rule for rent?
The 30% rule states that monthly rent should not exceed 30% of gross monthly income. It originated from a 1970s US federal housing programme and has become the standard benchmark for affordability. It is a useful rule of thumb but has limitations: it ignores after-tax income, local cost-of-living variations, and individual circumstances like high debt payments or large family size.
How much rent can I afford on a $60,000 salary?
$60,000 annual salary ÷ 12 = $5,000/month gross. At 30%, maximum rent = $1,500/month. At 25% (a more conservative budget), maximum rent = $1,250/month. These are gross income figures — after federal and state tax, your take-home will be lower, making the practical affordability tighter. If you live in a high-cost area where $1,500 is unrealistic, aim for the lowest percentage you can achieve and compensate by cutting other discretionary spending.
Is 35% of income on rent too much?
35% is above the 30% guideline but not alarming if your other expenses are low and you are still able to save. The US Department of Housing and Urban Development defines "cost-burdened" as spending over 30% on housing, and "severely cost-burdened" as over 50%. Between 30–40% is a yellow zone: manageable in the short term but limiting for wealth-building. If you are at 35%+ and struggling to save, it may be time to look for cheaper housing or increase income.
Should I use gross or net income for the rent rule?
The traditional 30% rule uses gross income (pre-tax), which is how most landlords and lenders apply it. However, your actual budget should be based on take-home pay. In practice, 30% of gross often works out to 35–40% of net income after taxes. A more practical approach: calculate 30% of gross as your guideline maximum, then verify that your rent still leaves enough after-tax income to cover all essential expenses and savings.
Is the rent affordability calculator free?
Yes — free with no account needed. All calculations run in your browser and no data is stored. Use it when evaluating a new rental, renegotiating with a landlord, or making the rent vs buy decision alongside the Rent vs Buy Calculator on this site.