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Rent-to-Income Ratio Calculator

Check if your rent fits the 30%-of-income rule.

Result

31.73%
$1,560.00
$5,200.00

How it is calculated

The tool divides monthly rent by monthly income: ratio = rent / income × 100, shown as a percentage with two decimals. It also gives max rent at 30% = income × 0.30 in dollars, so you can compare your rent with the 30% guideline yourself, and repeats the income you entered. Income must be above zero and rent cannot be negative. The tool does not decide whether the income is gross or net; it uses whatever you type. The 30% limit is a common rule of thumb, not a rule that applies the same everywhere, and landlords in different places use their own thresholds.

Worked example

Monthly rent is $1,650 and monthly income is $5,200. The ratio is 1,650 / 5,200 = 0.3173, which is 31.73% of income. The rent that would be exactly 30% of that income is 5,200 × 0.30 = $1,560.00. So this rent is $90 a month above the 30% mark. The tool shows 31.73%, a 30% rent ceiling of $1,560.00 and the income of $5,200.00.

Try this example →

Common mistakes

  • Mixing gross and net income. The rule of thumb is normally stated on gross (before tax) income; entering take-home pay makes the ratio look higher than it would on that basis.
  • Using annual income with monthly rent, or the other way round. Both amounts must cover the same period.
  • Entering only your own income when rent is shared, or the whole household income when you pay only part. Use the rent and the income of the same people.
  • Leaving out other housing costs. The ratio covers rent only, so utilities, parking and renters insurance are not counted unless you add them to the rent.
  • Expecting a pass or fail message. The tool shows the ratio and the 30% rent amount, and you compare them; a lender or landlord may use a different threshold.

About this calculator

The rent-to-income ratio is the share of gross income spent on rent, calculated as monthly rent divided by monthly gross income. It is compared against the widely cited 30% rule — a housing affordability guideline with roots in decades of US federal housing policy — under which spending more than 30% of income on rent is considered a sign of being cost-burdened.

Landlords and property managers commonly use this same ratio (often inverted, requiring income to be at least three times the rent) to screen rental applicants, while renters and financial planners use it to judge whether a lease fits comfortably within a budget. This calculator takes your rent and income and returns the ratio as a percentage, along with the maximum monthly rent that equals 30% of your income, so you can compare your rent against that benchmark yourself.

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