Rent to Income Ratio Calculator

This calculator helps you determine if your rent is affordable by comparing your monthly rent to your gross monthly income.

Input Parameters

Calculation Results

Rent to Income Ratio

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Ratio limit (30%): 30%

Calculation Formula

Rent to Income Ratio = (Monthly Rent / Gross Monthly Income) × 100%

Where:
- Monthly Rent: Your total rent payment (including any additional fees)
- Gross Monthly Income: Your total income before taxes and deductions

Rent to Income Ratio Calculator Usage Guide

Learn how to use the Rent to Income Ratio Calculator and understand its importance in financial planning

How to Use This Calculator

  1. Enter your Gross Monthly Income (your total income before taxes and deductions)
  2. Enter your Monthly Rent (including any additional fees like security deposits, utilities, etc.)
  3. Click the Calculate button to see your rent to income ratio
  4. Review the results and the affordability assessment

Understanding the Results

The calculator provides two key results:

  • Rent to Income Ratio: This is the percentage of your gross monthly income that goes toward rent
  • Affordability Assessment: Based on industry standards, a ratio of 30% or less is generally considered affordable

What Does This Mean?

The rent to income ratio is an important financial metric that helps you understand how much of your income is dedicated to housing. Many financial advisors recommend keeping this ratio at or below 30% of your gross monthly income to maintain a healthy financial balance and avoid housing stress.

For example, if your gross monthly income is $5,000 and your rent is $1,500, your rent to income ratio would be 30% ($1,500 ÷ $5,000 × 100% = 30%). This is exactly at the recommended threshold.