How to use the rent calculator
- Enter your gross income before tax and choose per year or per month. For a shared rental, enter everyone's combined income.
- Enter your take-home pay per month: what actually reaches your bank account.
- Enter your monthly debt payments, such as car loans, student loans and credit card minimums.
- Enter your other essential costs: utilities, groceries, transport, insurance, phone and childcare.
- Read the comfortable rent range, then check the table to see how different rents would leave your budget.
How affordable rent is calculated
The calculator uses three common guidelines:
The 30% rule is the long-standing guideline that housing should take no more than 30% of income before tax. The 40× rule is the test many landlords and property managers use when they screen applicants: your yearly income should be at least 40 times the monthly rent. Because 12 ÷ 40 = 0.30, it lands on exactly the same figure as the 30% rule.
The 50/30/20 budget works from take-home pay instead. Half goes to needs, 30% to wants, and 20% to savings and extra debt payments. Rent is one of the needs, so the rent you can afford is half your take-home pay minus your debt payments and other essentials. This figure reflects your actual costs, so it is often the more realistic one.
Worked example
The defaults are a $75,000 salary, $4,800 a month take-home pay, $300 of debt payments and $700 of other essentials:
- Gross monthly income: 75,000 ÷ 12 = $6,250
- 30% rule: 0.30 × 6,250 = $1,875
- 40× rule: 75,000 ÷ 40 = $1,875
- 50/30/20 budget: 0.50 × 4,800 − 300 − 700 = 2,400 − 1,000 = $1,400
- Comfortable range: $1,400 – $1,875 a month
At the top of the range, rent plus debts would take (1,875 + 300) ÷ 6,250 = 34.8% of gross income. At $1,400, you would have $2,400 of take-home pay left for wants and savings each month.
Rent at different shares of income
Using the same $6,250 gross and $4,800 take-home pay, with $1,000 of debts and essentials:
| Rent as a share of gross | Rent a month | Left of take-home pay |
|---|---|---|
| 20% | $1,250 | $2,550 |
| 25% | $1,563 | $2,238 |
| 30% | $1,875 | $1,925 |
| 35% | $2,188 | $1,613 |
| 40% | $2,500 | $1,300 |
Above 30% of income, the U.S. Department of Housing and Urban Development counts a household as cost-burdened, and above 50% as severely cost-burdened. In expensive cities many renters pay more than 30%. If you do, keep the other numbers tight: low debts, modest fixed costs and some savings every month.
What landlords look at
Besides the 40× test, landlords commonly check your credit report, rental history and proof of income such as pay stubs or a job offer letter. Some ask for a monthly income of 3 times the rent instead, which is slightly easier to pass than 40×: $1,875 rent needs $5,625 a month ($67,500 a year) under 3×, but $75,000 a year ($6,250 a month) under 40×. If you fall short, a guarantor or co-signer, a larger deposit or a roommate can help. Plan for move-in costs too: often the first month's rent, a security deposit and sometimes fees.
Frequently asked questions
Is the 30% rule based on gross or net income?
Gross income, before tax. That makes it easy to compare households, but it can overstate what you can afford if you pay high taxes or put a lot into retirement savings. The budget figure uses take-home pay, which is why the calculator shows both.
How much income do I need for $2,000 rent?
Under the 40× rule, $80,000 a year ($6,667 a month). Under a 3× monthly rule, $6,000 a month or $72,000 a year. A landlord may accept less with good credit or a guarantor.
Should utilities count as part of rent?
If utilities are included in the rent, compare the full rent with the range. If you pay them separately, put them in other essential costs so the budget figure accounts for them.
Is it better to rent or buy?
It depends on how long you'll stay, local prices and what you could earn on a down payment. The rent vs. buy calculator compares the full cost of each over your stay, and the home affordability calculator shows the price your income supports.
Related calculators
- Rent vs Buy Calculator — Compare the true cost of renting and buying over the years you plan to stay, including opportunity cost.
- Budget Calculator — See what's left of your monthly take-home pay after expenses and savings, and how you compare with the 50/30/20 rule.
- Debt-to-Income Ratio Calculator — Your front-end and back-end debt-to-income ratios, compared with common mortgage lender limits.
- Home Affordability Calculator — How much house your income supports under the 28/36 rule, with your debts and down payment.
Results are estimates for educational purposes and are not financial, tax or legal advice. See our disclaimer.