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Rent Affordability Calculator

Check how much rent fits your income under the 30% guideline, the 40-times-rent rule many landlords screen with, and a budget that counts your other debts. Buying instead of renting? The home affordability calculator sizes a mortgage.

Enter income

Before tax, for everyone on the lease.

Optional. Car, student loan, card minimums.

Optional. What you pay on top of rent.

Percent of gross income. 36% is a common lending guideline.

Check a specific rent

Optional. See the income each rule asks for.

Result

Rent you can afford

$1,250.00 / month

25% of your gross monthly income, set by the budget after your debts

30% rule (rent + utilities)
$1,350.00
Landlord 40× rent rule
$1,500.00
Budget after debtsMost conservative
$1,250.00

Your month at that rent

Gross monthly income
$5,000.00
Rent
− $1,250.00
Utilities
− $150.00
Debt payments
− $400.00
Left before tax
$3,200.00

Income needed for $1,500.00 a month

Under the 30% rule
$66,000.00
Under the 40× rule
$60,000.00
Under your budget
$68,333.34
To pass all three
$68,333.34

At your income, that rent plus utilities is 33% of gross income. Above 30%, the level at which housing counts as a cost burden.

Show the working
  1. Monthly income = annual income ÷ 12$60,000.00 ÷ 12 = $5,000.00
  2. 30% rule: 30% of monthly income − utilities$5,000.00 × 30% − $150.00 = $1,350.00
  3. 40× rule: annual income ÷ 40$60,000.00 ÷ 40 = $1,500.00
  4. Budget: your limit × monthly income − utilities − debts$5,000.00 × 36% − $150.00 − $400.00 = $1,250.00

All figures are before tax. Landlords may also check credit, rental history and savings, and some accept a guarantor instead of the income rule.

Your gross monthly income at that rent

  • Rent$1,250.00(25%)
  • Utilities$150.00(3%)
  • Debt payments$400.00(8%)
  • Left before tax$3,200.00(64%)

Results are estimates for planning and education, not financial, tax or legal advice. Lenders, tax authorities and products apply their own rules and rounding.

Three ways to size your rent

There is no single right answer to how much rent you can afford, so the calculator shows three common yardsticks side by side and highlights the lowest:

  • The 30% rule. Keep rent plus utilities at or below 30% of your gross income. Households that pay more than 30% of their income for housing are counted as cost-burdened in HUD and Census Bureau housing statistics, and those paying more than 50% as severely cost-burdened.
  • The 40× rule. Many landlords and property managers ask for gross annual income of at least 40 times the monthly rent. It is a screening habit, not a law, and landlords differ in how strictly they apply it or whether they accept a guarantor instead.
  • A budget after your debts. The first two ignore what you already owe. This one caps rent, utilities and your other monthly debt payments together at a share of income you choose. The default of 36% is the back-end limit of the 28/36 guideline lenders use for mortgages.

Enter a rent in the last field to turn the question around and see the income each rule expects, which is what a landlord will check on your application.

The formulas

Rent ≤ 0.30 × I − U

Rent ≤ 12 × I ÷ 40

Rent ≤ b × I − U − D

I
gross monthly income
U
monthly utilities you pay yourself
D
other monthly debt payments
b
your limit for rent, utilities and debts, as a decimal (36% → 0.36)

12 × I ÷ 40 equals 0.30 × I, so the 40× rule is the 30% rule with nothing set aside for utilities. Run in reverse, the income a rule needs is (Rent + U) × 12 ÷ 0.30, Rent × 40, or (Rent + U + D) × 12 ÷ b a year. Maximum rents are rounded down to the cent and incomes up, so each figure passes its own rule.

Worked example

You earn $60,000 a year, pay $400 a month toward a car loan and budget $150 for utilities.

  1. Monthly income: $60,000 ÷ 12 = $5,000
  2. 30% rule: $5,000 × 30% − $150 = $1,350
  3. 40× rule: $60,000 ÷ 40 = $1,500
  4. Budget after debts at 36%: $5,000 × 36% − $150 − $400 = $1,250, the most conservative of the three and 25% of your gross income

Now the reverse: an apartment at $1,500 a month. A landlord using the 40× rule wants $60,000 a year, which you have. The 30% rule asks for ($1,500 + $150) × 12 ÷ 30% = $66,000, and your 36% budget for ($1,500 + $150 + $400) × 12 ÷ 36% = $68,333.34. You would pass the landlord’s check, but rent and utilities would take 33% of your gross income.

Choosing a number that works for you

  • Gross isn’t what you spend. All three rules use income before tax. Taxes, retirement contributions and insurance can take a quarter or more of it, so check the rent against your real take-home pay with the paycheck calculator.
  • Count the full cost of moving in. Security deposit, first month’s rent, application fees and moving costs often add up to two or three months of rent up front.
  • Leave room to save. A rent that just passes the rules can leave little for an emergency fund. The savings calculator shows what a monthly amount builds to.
  • Roommates and couples. Landlords usually add up the incomes of everyone on the lease; enter the combined income and debts to see the household figure.

High-cost cities

Where rents are high relative to pay, many renters spend more than 30%. That doesn’t make it a rule to follow; it is a sign to budget carefully, because every extra percent on rent is taken from saving, debt repayment and everything else.

Frequently asked questions

How much rent can I afford on $50,000 a year?

About $1,250 a month under the 30% rule with utilities included in the rent, or $1,250 under the landlord 40× rule ($50,000 ÷ 40). If you pay utilities separately or have other debts, subtract them first; the calculator does this for you.

What is the 40 times rent rule?

Many landlords require your gross annual income to be at least 40 times the monthly rent: $72,000 a year for a $1,800 apartment. It is a common screening rule, not a legal requirement, and landlords may accept a guarantor, a co-signer or a larger deposit if you fall short.

Is the 30% rule based on gross or net income?

Gross income, before tax. Because take-home pay is lower, 30% of gross can be close to 40% of what actually reaches your bank account, which is why it is worth checking the rent against your net pay as well.

Should utilities count toward the 30%?

Yes. The cost-burden measure used in federal housing statistics counts rent plus utilities. If your rent includes utilities, leave the utilities field at zero.

What income do I need for a $2,000 apartment?

$80,000 a year under the 40× rule, and $80,000 under the 30% rule if utilities are included in the rent. With $150 a month of separate utilities the 30% rule asks for $86,000. Enter the rent in the calculator to include your own debts and budget.

Sources

Last reviewed September 19, 2026