Rent Affordability Calculator
Find a realistic maximum rent using income rules, take-home cash flow, debt payments, savings goals, utilities, renters insurance, and other housing costs.
Rent rules compared
| Rule | Max rent | Total housing | Cash left |
|---|---|---|---|
| 25% of gross income | $1,550.00 | $1,875.00 | $2,475.00 |
| 30% of gross income | $1,925.00 | $2,250.00 | $2,100.00 |
| 35% of gross income | $2,300.00 | $2,625.00 | $1,725.00 |
| 40% of gross income | $2,675.00 | $3,000.00 | $1,350.00 |
How much rent can you afford?
The 30% rule is useful, but it is incomplete. This calculator compares a gross-income cap, a take-home-pay cap, and a cash-flow cap after debt payments and savings. The recommended rent uses the most conservative of those limits.
The supporting rent affordability guide explains when the 30% rule is too loose or too strict.
Formula and assumptions
The recommended maximum rent is the lowest result from three affordability tests, after subtracting utilities, renters insurance, and other recurring housing costs.
- Gross-income test:
gross monthly income * housing cap - non-rent housing costs. - Take-home-pay test: net monthly income times your selected take-home cap, minus non-rent housing costs.
- Cash-flow test: net monthly income minus debt payments, savings target, and non-rent housing costs.
Frequently asked questions
What percentage of income should rent be?
A common starting point is to keep total housing costs near 30% of gross income, but the safer number depends on take-home pay, debts, savings targets, and local living costs.
Should utilities be included in rent affordability?
Yes. Rent alone can look affordable while utilities, insurance, parking, and service charges push total housing costs too high.
Why does this calculator use both gross and net income?
Gross income rules are useful for quick screening, but take-home pay shows the real monthly cash left after taxes and payroll deductions.