Rent Affordability Calculator

Find out how much rent you can afford. Enter your gross monthly income, existing monthly debts, and savings. The calculator uses the 30% rule and the 50/30/20 budget framework to show your maximum and recommended rent along with a full budget breakdown.

Rent Affordability Calculator
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How Much Rent Can You Afford?

Rent affordability depends on your income, existing financial obligations, and savings goals. Two widely used rules of thumb help establish upper limits:

The 30% Rule

The most common guideline is that rent should be no more than 30% of your gross monthly income. On a $5,000/month income, that's $1,500. This rule is a starting point — your actual comfortable amount may be lower if you have high debts or ambitious savings goals.

The 50/30/20 Budget Rule

This framework allocates:

  • 50% for needs (rent, utilities, groceries, transportation, insurance, minimum debt payments)
  • 30% for wants (dining out, entertainment, subscriptions)
  • 20% for savings and debt payoff

Under 50/30/20, rent is just one component of the "needs" bucket. If rent alone consumes most of the 50%, you'll have little room for other necessities.

Practical Recommendation

This calculator recommends the lower of: (a) 30% of gross income, and (b) 50% of income minus other monthly needs (debts, estimated utilities). This gives a more realistic picture than either rule alone.

Frequently Asked Questions

What is the 30% rule for rent?+
The 30% rule states that you should spend no more than 30% of your gross (before-tax) monthly income on rent. If you earn $4,000/month, your rent should ideally be $1,200 or less. This rule originated from US housing policy in the 1980s and is still widely used today.
Is the 30% rule still realistic?+
In expensive cities, many renters spend 40–50% of income on rent. While exceeding 30% isn't ideal, it is common. The key is ensuring you can still cover all other necessities, save for emergencies, and make debt payments. Use this calculator to see your full picture.
Should I use gross or net income?+
The 30% rule traditionally uses gross (pre-tax) income. However, a more conservative approach uses net (take-home) pay since that's what you actually have to spend. If you want a stricter guideline, apply 30% to your net income instead.

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