Rent Affordability Calculator
Make informed decisions about your housing budget
with our easy-to-use calculator
How It Works
Our calculator uses the 30% rule of thumb for housing expenses. For required income, we multiply monthly rent by 30 to determine the recommended annual income. For affordable rent, we divide annual income by 30 to find the recommended monthly rent.
Benefits
- • Make informed housing decisions
- • Understand your budget limitations
- • Plan your finances effectively
- • Avoid overextending your budget
Frequently Asked Questions
The 30% rule is a widely accepted financial guideline that suggests you shouldn't spend more than 30% of your gross monthly income on housing expenses. While not a strict rule, it helps ensure you have enough money left for other essential expenses and savings.
Yes, ideally you should factor in utilities when calculating affordable rent. Consider setting aside an additional 10% of your rent budget for utilities, making your total housing costs closer to 40% of your income.
In expensive cities, you might need to allocate more than 30% of your income to rent. In such cases, you may need to make adjustments in other areas of your budget or consider having roommates to share costs.
This calculator uses gross (pre-tax) annual income. Your actual disposable income will be lower after taxes, so consider this when making housing decisions.
Besides rent, consider: utilities, renters insurance, security deposits, moving costs, furniture, and maintenance fees. Also budget for other living expenses like food, transportation, and savings.
This calculator provides estimates for informational purposes only.
Individual circumstances may vary, and we recommend consulting with a financial advisor for personalized advice.