Rent Calculator
Find out how much rent you can afford based on your monthly income.
What is a Rent Calculator?
A rent calculator helps you determine a safe monthly rent budget based on your income and existing debt obligations. It uses widely accepted rules of thumb to prevent overextending your housing budget.
How to Use This Calculator
- Enter your monthly gross income before taxes and deductions.
- Enter your total monthly debt payments such as car loans, student loans, and credit cards.
- Click Calculate to see your maximum affordable rent under the 30% and 40% rules.
Frequently Asked Questions
What is the 30% rule?
The 30% rule suggests spending no more than 30% of your gross monthly income on rent. This is a traditional benchmark used by landlords and financial advisors.
What is the 40% rule?
The 40% rule states that your total monthly debt payments plus rent should not exceed 40% of your gross monthly income. This accounts for existing obligations.
Should I use gross or net income?
These rules use gross income for simplicity. However, you may want to base your budget on net income to ensure you have enough for other living expenses and savings.
What if I live in a high-cost area?
In expensive cities, many people spend more than 30% on housing. If you must exceed this limit, try to reduce other expenses and maintain an emergency fund.