Rent affordability calculator
Enter your income to see a rent budget, or enter a rent to see the income it needs.
The 30% rule
A common guide is to spend no more than 30% of gross income on rent. At $60,000 a year ($5,000 a month), that is $1,500 a month. It is a rule of thumb, not a requirement. If you have a lot of debt or high other costs, a lower share is safer. If your income is high, you may spend a smaller share.
| Yearly income | Monthly income | Rent at 30% | Rent at 25% | Rent at 35% |
|---|---|---|---|---|
| $30,000 | $2,500 | $750 | $625 | $875 |
| $40,000 | $3,333 | $1,000 | $833 | $1,167 |
| $50,000 | $4,167 | $1,250 | $1,042 | $1,458 |
| $60,000 | $5,000 | $1,500 | $1,250 | $1,750 |
| $75,000 | $6,250 | $1,875 | $1,563 | $2,188 |
| $100,000 | $8,333 | $2,500 | $2,083 | $2,917 |
The 40 times rent rule
Many landlords ask for a yearly income of about 40 times the monthly rent. For a $1,500 rent that is $60,000. That is the same as the 30% rule: $1,500 / 0.30 x 12 = $60,000. Requirements differ by landlord and city.
Before you sign
- Add utilities, renter's insurance, parking and fees to the rent.
- Think about take-home pay. Rent at 30% of gross is a higher share of what you actually receive.
- Savings and debt payments matter too. A 50/30/20 split puts needs, including rent, at about 50% of take-home pay.
Questions people ask
How much rent can I afford on $60,000 a year?
At 30% of gross income, about $1,500 a month.
Is the 30% rule realistic?
In some cities, rents take more than 30% of income. Use it as a starting point and check your budget.
Should I use gross or take-home pay?
The 30% rule uses gross pay. If you budget with take-home pay, a lower percentage is safer.
What is the 40x rule?
Many landlords want yearly income of at least 40 times the monthly rent.