fincalculator
Rent Calculator
Use this free Rent Calculator to determine an affordable rental budget based on your income. Simple, accurate, and easy to use online.
The Rent Calculator is designed to help you determine how much rent you can comfortably afford based on your gross monthly income. Adhering to a budget is the first step in financial wellness.
Financial experts generally recommend the 30% Rule, which suggests that you should spend no more than 30% of your gross monthly income (income before taxes) on rent. This ensures you have enough left over for other debts, savings, and living expenses.
Fincalculator
INPUT VALUES
When to Use This Calculator
Use this calculator to:
- Establish a Budget: Before browsing listings, know your maximum price point to avoid falling in love with an apartment you can't afford.
- Evaluate Financial Health: Check if your current rent is putting you at financial risk.
- Plan for Relocation: If moving to a new city with a different salary, calculate your new housing budget.
Example Scenario
Gross Monthly Income: $5,000
Recommended Limit (30%): $5,000 × 0.30 = $1,500.
Rent-to-Income Ratio logic:
- Rent $1,500 (30%): Affordable.
- Rent $1,750 (35%): Moderate Risk.
- Rent $2,000 (40%): Unaffordable.