Rent Calculator
- Updated
- Formula shown
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Results
You can afford about $1,250 to $1,500 a month in rent on $60,000 a year.
| Annual income | Monthly income | Rent at 25% | Rent at 30% | Top of range |
|---|---|---|---|---|
| $30,000 | $2,500 | $625 | $750 | $600 |
| $40,000 | $3,333 | $833 | $1,000 | $900 |
| $50,000 | $4,167 | $1,042 | $1,250 | $1,200 |
| $60,000 | $5,000 | $1,250 | $1,500 | $1,500 |
| $75,000 | $6,250 | $1,563 | $1,875 | $1,875 |
| $90,000 | $7,500 | $1,875 | $2,250 | $2,250 |
| $100,000 | $8,333 | $2,083 | $2,500 | $2,500 |
| $125,000 | $10,417 | $2,604 | $3,125 | $3,125 |
| $150,000 | $12,500 | $3,125 | $3,750 | $3,750 |
| $200,000 | $16,667 | $4,167 | $5,000 | $5,000 |
The 30% rule and the DTI limit are rules of thumb, not lending law. Take-home pay, utilities, savings goals and where you live matter as much.
How to use the rent calculator
- Enter your gross household income, per year or per month. Use pay before tax, since that is what the rules below are based on.
- Add the monthly payments on debts you carry: car loan, student loans, minimum card payments and any other loans.
- Keep the 30% rule and 36% debt-to-income limit, or change them. The comfortable share sets the bottom of the range.
- Optionally type the rent of a place you are looking at to see its share of your income.
Rent affordability formula
Rent within DTI = gross monthly income × DTI limit % − monthly debts
Top of range = the lower of the two
Bottom of range = gross monthly income × comfortable % (never above the top)
The rule % is the largest share of gross income you are willing to spend on rent: 30% by default. The DTI limit caps rent plus all debt payments as a share of income, so someone with a big car payment gets a lower ceiling than someone with no debts on the same pay. The comfortable % (25% by default) marks a level that leaves more room for saving.
Worked example
A household earns $60,000 a year, which is $5,000 a month, and pays $300 a month on a car loan. Thirty percent of income is $1,500. The 36% limit is $1,800 for rent and debts together, which leaves $1,500 for rent after the car payment. The lower figure wins, so the range is $1,250 to $1,500 a month, and at the top of the range rent plus debts take 36% of income.
If the same household had $600 of monthly debts, the debt limit would bite first: $1,800 − $600 leaves only $1,200 for rent, even though 30% of income is still $1,500.
Affordable rent by income
With no other debts, using 25% and 30% of gross income. Debts lower the top figure only when rent plus debts would exceed 36%.
| Annual income | Monthly income | Rent at 25% | Rent at 30% |
|---|---|---|---|
| $35,000 | $2,917 | $729 | $875 |
| $45,000 | $3,750 | $938 | $1,125 |
| $55,000 | $4,583 | $1,146 | $1,375 |
| $65,000 | $5,417 | $1,354 | $1,625 |
| $80,000 | $6,667 | $1,667 | $2,000 |
| $100,000 | $8,333 | $2,083 | $2,500 |
| $120,000 | $10,000 | $2,500 | $3,000 |
| $150,000 | $12,500 | $3,125 | $3,750 |
Income needed for a given rent
| Monthly rent | Income for rent at 30% | Income for rent at 25% |
|---|---|---|
| $1,000 | $40,000 a year | $48,000 a year |
| $1,250 | $50,000 a year | $60,000 a year |
| $1,500 | $60,000 a year | $72,000 a year |
| $1,750 | $70,000 a year | $84,000 a year |
| $2,000 | $80,000 a year | $96,000 a year |
| $2,500 | $100,000 a year | $120,000 a year |
| $3,000 | $120,000 a year | $144,000 a year |
Where the 30% rule comes from
The 30% figure is a convention from US housing policy, not a law of personal finance. HUD's research office describes households that pay more than 30% of income for housing as cost-burdened, and more than 50% as severely cost-burdened. The idea goes back to the Brooke Amendment of 1969, which capped public housing rent at 25% of income; the cap rose to 30% in 1981. Some landlords screen applicants with a similar test, asking for gross annual income of 40 times the monthly rent, which is the same 30% (12 ÷ 40).
Tips for setting a rent budget
- Check against take-home pay too. Thirty percent of gross pay can be 40% or more of what reaches your bank account after tax and retirement contributions. The budget calculator works from take-home income.
- Count the extras. Utilities, renter's insurance, parking and pet rent can add a lot. Compare total housing cost, not just the advertised rent.
- High-cost cities break the rule. Many renters pay more than 30% because there is little choice. If you do, keep other spending and debt low and hold an emergency fund.
- Debts matter. See your full picture with the debt-to-income ratio calculator.
- Thinking of buying instead? The rent vs buy calculator compares the two over time, and the house affordability calculator shows the price your income supports.
Frequently asked questions
How much rent can I afford on $60,000 a year?
About $1,250 to $1,500 a month. $60,000 is $5,000 a month gross; 25% of that is $1,250 and 30% is $1,500. If you also pay more than $300 a month on debts, a 36% debt-to-income limit brings the top figure down.
What is the 30% rule for rent?
A rule of thumb that rent should take no more than 30% of your gross (before-tax) income. It comes from US housing policy, where households paying more than 30% of income for housing are described as cost-burdened. It is a guide, not a requirement.
How much do I need to earn to afford $2,000 rent?
At 30% of gross income you need $80,000 a year ($6,667 a month). At a more comfortable 25% you need $96,000 a year.
Do debts change how much rent I can afford?
Yes. With a 36% debt-to-income limit, rent plus debts should stay under 36% of gross income. On $5,000 a month with $600 of debt payments, that leaves $1,200 for rent, less than the $1,500 the 30% rule alone would allow.
Should I use gross or net income for the rent rule?
The 30% rule and landlord income checks use gross income. Your budget runs on take-home pay, though, so also check that rent leaves enough for bills, savings and debt payments after tax.