Rent Affordability Calculator
Wondering what rent you can afford? Use the rent calculator below to figure out how much you could spend on rent while keeping your finances in check.
Wondering what rent you can afford? Use the rent calculator below to figure out how much you could spend on rent while keeping your finances in check.
To calculate how much rent you can afford, we multiply your gross monthly income by 20%, 30% or 40%, based on how much you want to spend. You can use the slider to change the percentage of your income you want spend on housing. If you use the additional options, we deduct the rent from your income and subtract your debt, expenses, and savings from the remaining money, depending on which fields you filled in. The final number represents the money you have left to spend per month.
The share of your income that should go towards paying your rent depends on many factors, the most important ones being your income level and where you want to live. Still, there are a few commonly accepted rules you can use if you want to figure out a specific ratio of rent to income. For example, our rental income calculator starts with 30% as a standard for how much of your income you should set aside for rent. However, this doesn’t mean that 30% is the only option:
If you spend around 20% of your earnings on rent, you could generally spend more on non-essentials or save more. However, spending about 20% on housing when you’re earning a regular income means you’ll have to keep your distance from sleeker apartments, especially in pricier metros. But if you’re the type of person who doesn’t mind making a compromise or two to save some money on rent, 20% can be a good option for you.
Spending around 30% of your income on rent is the golden rule when you’re trying to figure out how much you can afford to pay. Spending 30% of your income on rent can help you reach a healthy balance between comfort and affordability. On a median income, 30% should get you an apartment you can truly call home. At the same time, you should have money left to keep up with any debt you may have and contribute to your savings.
It can be very tempting to spend more on rent, especially if you think you’ve found the perfect home. If you earn an above-average income, allocating 40% of it for an apartment should get you a rental in a better location or more living space. But keep in mind that shelling out 10% extra each month comes with its risks. It’s always smart to keep an eye on your spending habits, set and track budgets for day-to-day expenses.
Disclaimer: The results the calculator provides are just a suggestion. You should evaluate your finances carefully before signing a lease on a new apartment.