How this calculator works
This calculator estimates how much rent fits a target share of your gross (pre-tax) income. Enter your income as an annual or monthly figure and a target percentage, and it returns the affordable monthly rent along with a table comparing four common budget percentages.
The most familiar guideline is the "30% rule": spend no more than 30% of gross income on rent. It is a rough rule of thumb, not a financial law, and it originated from US federal housing assistance guidelines rather than any calculation tailored to your situation. Your true comfortable rent depends on debt payments, dependents, savings goals, and the cost of living where you are, so treat the output as a starting point for budgeting, not a ceiling.
The formula
Affordable monthly rent = Monthly gross income × Target percentage ÷ 100Monthly gross income = Annual gross income ÷ 12 (when income is entered annually)Worked example: $60,000 a year at 30%
- Annual gross income $60,000, target 30% of income for rent.
- Monthly gross income = 60,000 ÷ 12 = $5,000.
- Affordable rent = 5,000 × 0.30 = $1,500 per month.
- Annual rent budget = 1,500 × 12 = $18,000 a year.
Frequently asked questions
Where does the 30% rule come from?
It traces back to US federal housing assistance guidelines that used 30% of income as the threshold for being "cost burdened." It became a popular personal-finance rule of thumb even though it was not designed as individual budgeting advice.
Should I use gross or net (after-tax) income?
This calculator uses gross income, matching how most landlords and the 30% rule itself are typically framed. Since taxes reduce what you actually take home, your comfortable rent as a share of take-home pay will be higher than the percentage shown here.
Is 30% always the right target?
No. People with low debt and few other obligations sometimes stretch to 35-40%; people with significant debt, dependents, or aggressive savings goals often do better staying below 25%. The table shows all four so you can compare.
Does this account for utilities and other housing costs?
No, it estimates rent alone. If utilities, renters insurance, or parking are billed separately, add those to the rent figure before comparing it against your target percentage.
Can I enter my income as a monthly amount instead of an annual salary?
Yes — this calculator accepts your income either as an annual figure or already as a monthly amount, so enter whichever one you actually know. If you provide an annual number, it divides by 12 to get monthly gross income first; either way, the same target-percentage formula then produces the affordable monthly rent.