Rent Affordability Calculator
The rent your income supports, the income a rent needs, and what a lease really costs.
By rule
How this was calculated
Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
About the Rent Affordability Calculator
Find the rent your income can carry, four ways: the 30% rule (housing within 30% of gross income), the 50/30/20 budget (rent and every other need within half your take-home pay), and the income tests landlords use — gross monthly income at least 3× the rent, or yearly income at least 40× the monthly rent. Enter a rent you are looking at and the calculator checks it against each one and shows the income each would need.
Three more modes handle the rest of renting: the income a given rent needs, the prorated rent for a part month when you move in or out, and the net effective rent of a lease with free months and a broker fee. The India setting adds society maintenance, the security deposit in months of rent, brokerage and the return a locked-up deposit could have earned.
How to use it
- Choose India or Other countries (and the currency), then the mode.
- For rent you can afford, enter your gross income (a month or a year), your take-home pay, the monthly payments on your loans and cards, and your other essential costs. Add a rent you are considering to check it.
- For income you need, enter the rent (and maintenance) to see the income each rule asks for.
- For prorated rent, enter the monthly rent and the move-in or move-out date, and choose how the landlord counts days.
- For net effective rent, enter the rent, the lease length, free months and the broker fee; in India also the deposit and maintenance.
- Copy the summary or download the table.
Examples
30% rule $1,500 · 50/30/20 budget $850 · 3× test $1,666.67 · 40× test $1,500 · comfortable rent up to $850
The 50/30/20 budget is the tightest here because debts and essentials already take $1,100 of the $1,950 that half the take-home pay allows.
30% rule ₹27,000 · 50/30/20 budget ₹13,000 · comfortable rent up to ₹13,000 · move-in cash at that rent with 2 months’ deposit and 1 month’s brokerage ₹55,000
$80,000 a year by the 30% rule and the 40× test; $72,000 ($6,000 a month) by the 3× test
12 days: $580.65 by days in the month, $600.00 by a 30-day month, $591.78 by yearly rent ÷ 365
Net effective rent $2,750 (8.33% off) · $3,200 a month once the $5,400 broker fee is spread over the lease
Common uses
- Set a rent budget before you start looking.
- Check whether a flat you like passes the landlord’s income test.
- Work out the salary to ask for to afford a city’s rents.
- Settle the first or last month’s rent when you move mid-month.
- Compare leases with and without free months or broker fees.
The rules, and what they count
- 30% rule: rent (plus maintenance in India) ≤ 30% of gross monthly income. Gross means before tax.
- 50/30/20 budget: needs ≤ 50% of take-home pay. Rent, maintenance, the minimum payments on loans and cards and other essentials (food, utilities, insurance, commuting) are all needs; 30% is for wants and 20% for savings.
- 3× test: gross monthly income ≥ 3 × the monthly rent — rent up to a third of income.
- 40× test: gross yearly income ≥ 40 × the monthly rent — the same as rent up to 30% of income.
The calculator calls the lower of the 30% rule and the 50/30/20 budget your comfortable rent; the landlord tests show the most a landlord using them would accept. None of these is a law: landlords set their own criteria and may also look at your credit, savings or a guarantor.
Prorated rent: three ways to count days
- Days in that month: rent ÷ the days in the month × the days you live there — the most common.
- 30-day month: rent ÷ 30 × days.
- Yearly rent ÷ 365: rent × 12 ÷ 365 × days.
Days include both the move-in (or move-out) day and the last (or first) day of the month. Your lease says which method applies; the table shows all three so you can compare.
Net effective rent
With a concession such as a free month, the rent on the lease (the gross rent) is not what you pay on average. Net effective rent = rent × (lease months − free months) ÷ lease months. A broker fee and other one-time fees you pay are a cost of the lease too: spread over the lease they give the effective monthly cost. In India the calculator also adds the maintenance and the return your security deposit could earn at the rate you enter while the landlord holds it.
Renting in India
Rents are often quoted with society maintenance extra; it is a housing cost, so the 30% rule and the 50/30/20 budget count it (the landlord tests use the rent alone). Security deposits and brokerage are agreed with the landlord and agent and vary from city to city; enter yours in months of rent to see the cash you need on day one. If you claim HRA, the HRA exemption calculator shows how much of it is tax-free.
Limitations
- Rules of thumb, not advice: your other goals, savings and location matter as much as these ratios.
- The landlord tests are shown as commonly described; each landlord or agent applies its own version (some use take-home pay, add a guarantor or count a partner’s income).
- Utilities, renter’s insurance, parking and moving costs are not added unless you include them in essentials or fees.
- The deposit’s lost return is simple interest at the rate you enter; it assumes the deposit is returned in full.
Privacy
Everything is calculated in your browser. Your income and rent figures are never uploaded or stored.
Frequently asked questions
How much rent can I afford on $60,000 a year?
About $1,500 a month by the 30% rule and the 40× test ($60,000 ÷ 40), and up to $1,666.67 by the 3× test. If debts and other essentials take a large part of your take-home pay, the 50/30/20 budget can allow much less — enter them to see.
What salary do I need for $2,000 rent?
$80,000 a year by the 40× test or the 30% rule, or $72,000 ($6,000 a month) by the 3× test. The 50/30/20 budget asks for take-home pay of at least twice the rent plus your debts and other essentials.
What is the 40× rent rule?
A landlord’s test: your gross yearly income must be at least 40 times the monthly rent. For $2,500 rent that is $100,000 a year. It works out the same as keeping rent to 30% of gross income.
How do I calculate prorated rent?
Divide the monthly rent by the days in the month and multiply by the days you live there, counting the move-in day. Moving in on 20 October (31 days) at $1,500 is 12 days: $1,500 ÷ 31 × 12 = $580.65. Some leases divide by 30 or use a yearly rate ÷ 365 instead.
What is net effective rent?
The average monthly rent over a lease after concessions: rent × (lease months − free months) ÷ lease months. One month free on a 12-month lease at $3,000 is a net effective rent of $2,750 — but you still pay the full $3,000 in each month that is not free.
Should I use gross or take-home pay?
The 30% rule and landlords’ tests use gross (pre-tax) income. The 50/30/20 budget uses take-home pay, which is why it is stricter for people with high taxes or deductions. The calculator shows both.