How much rent can you afford?
The quickest guide is the 30% rule: keep rent at or below 30% of your gross monthly income, the amount before tax. This calculator applies that percentage (you can change it) and also runs a debt-aware check based on the 36% rule that lenders use.
What is the 36% check?
Lenders often want your total debt payments, rent included, under about 36% of gross income. If you enter your other monthly debts, the second figure shows the most you could pay in rent while staying under that line. When you carry debt, use the lower of the two numbers.
A worked example
On a gross monthly income of 5,000 with no other debt, 30% points to 1,500 in rent, and the 36% rule allows up to 1,800. With 500 of other monthly debt, the 36% ceiling drops to 1,300, so that becomes your safer limit.
Good to know
This is a starting point, not a budget. The honest way to set rent is take-home pay minus your real commitments minus savings. Use the salary calculator to turn a yearly or hourly wage into monthly pay first. This is general information, not financial advice.
Frequently asked questions
What percentage of income should go to rent?
A common guideline is 30% of gross monthly income. On 5,000 a month that is 1,500. Treat it as a ceiling and adjust down if you carry debt or want to save more.
What is the 36% rule?
Lenders like your total debt payments, including rent, to stay under about 36% of gross income. This calculator uses it for the debt-aware figure when you enter your other monthly debts.
Should I use income before or after tax?
The 30% and 36% rules use gross income, before tax. Because you pay rent from take-home pay, sanity-check the result against your real net budget too.
Does it include utilities?
No. Utilities, insurance and fees come on top of rent, so budget for the all-in cost. Aim a little below the calculated ceiling to leave room for them.