Rent-to-Income Ratio Calculator

Find what share of income your rent takes.

Monthly rent

Monthly gross income

Results update as you type.

Rent-to-income ratio

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How it works

The rent-to-income ratio shows what portion of your income goes toward rent, and this calculator computes it as a percentage. You enter your monthly rent and your monthly gross income, and it returns the ratio. This figure is central to judging housing affordability, both for renters budgeting their finances and for landlords screening applicants. The widely cited 30 percent rule suggests keeping rent at or below 30 percent of gross income, a threshold rooted in decades of housing policy as the point beyond which households are considered cost-burdened and may struggle to afford other necessities. Many landlords require that rent not exceed about 30 percent of income, or equivalently that income be at least three times the rent, when approving a lease. A lower ratio leaves more room for savings, debt payments, and living expenses, while a higher ratio signals financial strain. That said, the ideal ratio depends on your situation: those with low debt or in low-cost areas may comfortably spend more, while those with high expenses should aim lower, and in expensive cities exceeding 30 percent is common. Use this to check whether a rent fits your budget or to see how much rent you can reasonably afford. Enter your monthly rent and income to compute your rent-to-income ratio.

Formula

Ratio = monthly rent / monthly income × 100

The rent-to-income ratio divides your monthly rent by your monthly gross income and multiplies by 100. It shows the percentage of your income that goes to rent. A common affordability guideline is the 30 percent rule: spending no more than 30 percent of gross income on rent, though the right level depends on your circumstances.

Source:Personal finance

We review all our tools from time to time to ensure accuracy.

Worked example

Monthly rent:1500Monthly gross income:5000

1,500 / 5,000 × 100 = 30%, right at the common affordability guideline.

How to use this calculator

1
Enter your values
Enter monthly rent and monthly gross income.
2
Adjust the options
Fine-tune any options to match your situation.
3
Read your result
Rent-to-income ratio updates instantly as you type — no button to press.

Frequently asked questions

What is the rent-to-income ratio?

The rent-to-income ratio is the percentage of your gross monthly income that goes toward rent. It is found by dividing monthly rent by monthly income and multiplying by 100. It is a key measure of housing affordability used by renters to budget and by landlords to assess whether applicants can afford a unit.

What is the 30 percent rule?

The 30 percent rule is a guideline suggesting you spend no more than 30 percent of your gross income on rent. Households paying more are often considered cost-burdened. It is a rule of thumb, not a strict limit, and the appropriate level varies with your debts, expenses, and the cost of living in your area.

Should I use gross or net income?

Landlords and the standard guidelines typically use gross income, your pay before taxes and deductions, so this calculator does too. However, for your own budgeting, comparing rent to your take-home pay gives a more realistic view of what you can actually afford after taxes, so consider both perspectives when evaluating affordability.

What ratio do landlords require?

Many landlords require that rent not exceed about 30 percent of gross income, often phrased as needing income of at least three times the monthly rent. Some allow higher ratios in expensive markets or with a strong credit history or guarantor. Requirements vary, so check the specific criteria for the property you are applying to.

What if my ratio is above 30 percent?

A ratio above 30 percent means rent takes a large share of your income, leaving less for savings and other costs, and it may make approval harder. In high-cost cities this is common. If your ratio is high, consider a cheaper unit, a roommate to split rent, or increasing income to bring the ratio down.