How to Calculate Rent Calculator
What is Rent Calculator?
A rent affordability calculator determines how much rent you can comfortably pay based on your income. The most widely used rule is the 30% rule — no more than 30% of gross (pre-tax) monthly income on rent. Many financial advisors now suggest 25–28% to allow for savings.
Step-by-Step Guide
- 1Determine your gross monthly income (before taxes)
- 2Apply the 30% rule: max rent = income × 0.30
- 3More conservative: 28% rule leaves more for savings
- 4DTI approach: housing + all debts should not exceed 36% of income
Worked Examples
Input
$60,000/year ($5,000/month)
Result
$1,500/month max (30% rule)
$1,400 at 28%, $1,800 with no other debts (36% DTI)
Input
$80,000/year + $400/month in debts
Result
$2,000/month max (36% DTI rule)
36% of $6,667 = $2,400 − $400 debts = $2,000