Rent Calculator: How Much Rent Can I Afford?
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The common 30% rule says to spend no more than 30% of your gross income on rent. On $72,000 a year that is $1,800 a month. Most landlords also want income of at least 3 times the rent.
On $6,000 a month before tax, the common 30% rule gives a rent of $1,800. After your $400 of other debts, the 36% debt-to-income cap allows $1,760. A comfortable rent is the lower figure, $1,760. Many landlords approve rent up to a third of your gross income, $2,000.
Rules compared
| Rule | Max rent | Per year | Left from take-home |
|---|---|---|---|
| 30% rule | $1,800 | $21,600 | $2,800 |
| 28% rule | $1,680 | $20,160 | $2,920 |
| 36% debt-to-income | $1,760 | $21,120 | $2,840 |
| 50/30/20 needs | $2,300 | $27,600 | $2,300 |
| Landlord 3× income | $2,000 | $24,000 | $2,600 |
Show the steps
- Monthly gross income: $6,000.00.
- 30% rule: $6,000.00 × 0.30 = $1,800.00.
- Debt cap: $6,000.00 × 0.36 − $400.00 debts = $1,760.00.
- 50/30/20: $4,600.00 take-home × 0.50 = $2,300.00 for needs including rent.
- Landlord 3× rule: $6,000.00 ÷ 3 = $2,000.00.
Rent affordability rules
30% rule: rent ≤ 0.30 × gross monthly income
Debt cap: rent + debts ≤ 0.36 × gross monthly income
Landlord rule: gross monthly income ≥ 3 × rent
- These are guidelines, not limits. In high-cost cities many renters pay more than 30%. Add utilities, renters insurance and parking when you compare apartments.
- The 50/30/20 figure treats rent as part of all your needs, so you may have less than shown after food, transport and insurance.
Estimates for planning and learning, not financial, tax, legal or medical advice. Check figures with your lender, tax preparer or doctor before you act.
About this calculator
There is no single right answer to how much rent you can afford, so this calculator shows several well-known rules side by side. The lowest figure is a safe place to start, and the highest tells you what most landlords will approve.
Enter your income, take-home pay and monthly debts. You can also test a specific rent to see which rules it passes.
How to use it
- Enter your gross income and choose whether it is per year or per month.
- Enter your monthly take-home pay.
- Enter the monthly payments you make on debts.
- Optionally enter a rent you are considering, then compare the rules.
The rules explained
- 30% rule: rent at or below 30% of gross income.
- 36% debt cap: rent plus other debts at or below 36% of gross income.
- 50/30/20: half of take-home pay for needs, 30% for wants, 20% for savings.
- Landlord 3× rule: gross income at least three times the monthly rent.
Costs beyond rent
Utilities, renters insurance, parking, pet fees and commuting can add several hundred dollars a month. Include them when you compare places.
Sources
Quick check: test yourself
Using the 30% rule, how much rent can you afford on $4,000 a month before tax?
Correct answer: $1,200. $4,000 × 0.30 = $1,200.
Many landlords want monthly income of at least how many times the rent?
Correct answer: 3. The common rule is gross monthly income of at least three times the rent.
In the 50/30/20 budget, what share of take-home pay goes to needs such as rent?
Correct answer: 50%. 50% needs, 30% wants, 20% savings and debt.
Pick an answer for each question.
Common questions
How much rent can I afford on my income?
A common guideline is 30% of your gross monthly income. Divide your yearly income by 12 and multiply by 0.30.
What is the 3× rent rule?
Many landlords require gross monthly income of at least three times the rent.
Should I use gross or take-home pay?
Landlords and the 30% rule use gross pay. For your own budget, take-home pay is more realistic.
What if I have debt?
Debt lowers what you can afford. The 36% cap subtracts your debt payments from 36% of your income.
Do utilities count in the 30%?
Usually not, but adding them to your budget gives a more honest total.
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