Real Estate

Rent Affordability Calculator (How Much Rent Can I Afford?)

Enter your gross income and monthly debt payments to see an affordable rent range.

Your numbers

Symbol only: enter amounts in the currency you pick.
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Your results

Affordable rent (lowest of the checks)
Affordable rent (lowest of the checks)
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By the share-of-income rule
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By the landlord 40× rule
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By the debt-to-income limit
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Income landlords may want for this rent (40×)
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Rent Affordability Calculator (How Much Rent Can I Afford?) by TheCalcTools

How the Rent Affordability Calculator (How Much Rent Can I Afford?) works

A long-standing guideline is to spend no more than about 30% of gross income on housing; the US Department of Housing and Urban Development calls households above 30% cost-burdened. Many landlords also require yearly income of 40 times the monthly rent.

If you have other debts, keeping rent plus debt payments under about 43% of gross income leaves room for savings and other costs. Use the lowest figure as a comfortable maximum.

The formula

Rent ≤ 30% × monthly income; rent ≤ income ÷ 40; rent ≤ DTI limit × monthly income − debts

Worked example

Using the default values shown in the calculator:

Gross yearly income$72000
Monthly debt payments (cards, loans)$400
Share of gross income for rent30 %
Maximum total debt-to-income (rent + debts)43 %
  1. On 72,000 a year: 30% is $1,800 a month and the 40× rule allows $1,800.
  2. With 400 of debts at a 43% limit: $2,180. A comfortable maximum is $1,800.

Result:

Affordable rent (lowest of the checks)$1,800
By the share-of-income rule$1,800
By the landlord 40× rule$1,800
By the debt-to-income limit$2,180
Income landlords may want for this rent (40×)$72,000

Frequently asked questions

Is 30% realistic in expensive cities?

Often not. If you pay more, cut other spending and keep an emergency fund; shared housing can help.

Sources and further reading

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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.