Rent Affordability Calculator

Q: Should I use gross or net income to calculate rent?

The standard 30% rule is based on gross income (your income before taxes), as this is the figure most landlords use for verification. However, for your personal budgeting, it's crucial to consider your net income (take-home pay) to ensure you have enough cash for all other expenses and savings after rent is paid.

Q: What is a good debt-to-income (DTI) ratio for renters?

Most landlords prefer a debt-to-income (DTI) ratio below 43%. This means that your total monthly debt payments (including your potential rent) should not exceed 43% of your gross monthly income. A lower DTI ratio makes you a more attractive applicant.

Find a rent price that fits your budget and empowers your financial goals.

Your Monthly Gross Income

Additional Monthly Income

Monthly Debt Payments

Other Monthly Expenses

Percentage of Income for Rent: 30%

The 30% rule is a common guideline. Adjust to your comfort level.

How Much Rent Can You Really Afford?

Determining your rental budget is the most critical step in your apartment search. Guessing can lead to financial stress, while being too conservative might mean missing out on a great home. Our calculator uses trusted financial guidelines to move beyond guesswork, giving you a data-driven rent price that aligns with your income, debts, and lifestyle.

By understanding your true affordability, you can search for apartments with confidence, knowing you can comfortably meet your monthly payments while still having money for savings and other life goals.

How to Use This Calculator

Get a personalized rent recommendation in four simple steps:

Step 1: Enter Your Income: In the 'Your Monthly Gross Income' field, input your total income before taxes. Add any other consistent monthly earnings (like a side hustle or roommate's contribution) in the 'Additional Monthly Income' field.
Step 2: Input Your Expenses: Sum up all your fixed monthly debt payments, such as car loans, student loans, or credit card payments, and enter them. Then, add other recurring expenses like groceries, utilities, and entertainment.
Step 3: Set Your Rent Budget: Use the slider to choose the percentage of your income you want to allocate to rent. The 30% rule is a popular starting point, but you can adjust it based on your financial goals and comfort level.
Step 4: Calculate and Review: Click the 'Calculate Affordable Rent' button. The tool will instantly display your recommended monthly rent, a summary of your finances, and a visual chart breaking down your budget.

Understanding the 30% Rule for Rent

The 30% rule is a long-standing financial guideline suggesting that you should spend no more than 30% of your gross monthly income on housing costs. For example, if your gross income is $5,000 per month, your target rent would be $1,500. This rule is popular because it provides a simple benchmark to prevent you from becoming "house poor"—a situation where too much of your income is spent on housing, leaving little for other necessities, savings, or debt repayment.

However, it's just a starting point. In high-cost-of-living areas, it might be necessary to spend more, while in more affordable cities, you could spend less and accelerate your savings.

Beyond the 30% Rule: The 50/30/20 Budget

For a more holistic view of your finances, consider the 50/30/20 budget framework. This method allocates your after-tax income as follows:

50% for Needs: All essential expenses fall into this category. This includes your rent, utilities, groceries, transportation, and insurance.
30% for Wants: This covers discretionary spending like dining out, shopping, hobbies, and entertainment.
20% for Savings & Debt: The remaining portion should go towards building an emergency fund, saving for retirement, and paying off high-interest debt.

Your rent should fit comfortably within the 50% "Needs" category, ensuring you have a balanced budget for all aspects of your life.

Frequently Asked Questions

Should I use gross or net income to calculate rent?

The standard 30% rule is based on gross income (your income before taxes), as this is the figure most landlords use for verification. However, for your personal budgeting, it's crucial to consider your net income (take-home pay) to ensure you have enough cash for all other expenses and savings after rent is paid.

What other costs should I consider when renting?

Beyond monthly rent, you must budget for other housing-related expenses. These can include a security deposit (often one month's rent), utilities (electricity, gas, water), internet, renter's insurance, parking fees, pet fees, and moving costs.

What is the 50/30/20 budget rule?

The 50/30/20 budget is another popular financial guideline where you allocate 50% of your after-tax income to needs (like rent, utilities, food), 30% to wants (entertainment, dining out), and 20% to savings and debt repayment. Your rent should fit comfortably within the 50% 'needs' category.

What is a good debt-to-income (DTI) ratio for renters?

Most landlords prefer a debt-to-income (DTI) ratio below 43%. This means that your total monthly debt payments (including your potential rent) should not exceed 43% of your gross monthly income. A lower DTI ratio makes you a more attractive applicant.