A common rule of thumb says rent should be about 30 percent of your gross income. Enter your income and see the rent that rule suggests, or check what share of your income a particular rent takes.
| Yearly rent at that level | – |
| Your income each month | – |
| The rent you entered takes | – |
How it works
Maximum rent = monthly gross income × percentage. The 30 percent guideline is a rough rule and not a law. Some landlords ask for income of 2.5 or 3 times the rent. Your own affordable rent depends on debts, savings, dependants, local costs and other spending.
Example
On a yearly income of 48,000, monthly income is 4,000. At 30% the suggested maximum rent is 1,200 a month.
Frequently asked questions
Is 30 percent the right share?
It is a common guideline. In expensive areas many people pay more, and others prefer to pay less.
Should I use gross or net income?
The rule uses gross income. Some people budget from take-home pay instead, which gives a tighter limit.
What else should I budget for?
Deposit, utilities, transport, insurance and savings.
More free tools: Budget calculator · Savings goal calculator · All free tools
This calculator is for general guidance and is not financial advice.