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Rent Affordability Calculator

Find your maximum affordable rent using the 30% rule and 50/30/20 budgeting framework

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Maximum Affordable Rent (30% Rule)

About the Rent Affordability Calculator

This rent affordability calculator helps you determine how much rent you can comfortably afford based on your income and existing debts. It applies the 30% gross income rule, the 50/30/20 budgeting rule, and computes your debt-to-income (DTI) ratio to give a comprehensive affordability picture.

How to Use

  1. Enter your annual gross income, total monthly debt payments, and any savings or down payment you have available.
  2. Enter your desired monthly rent to see how it compares to recommended limits.
  3. Review your maximum affordable rent, DTI ratio, 50/30/20 breakdown, and get a personalized recommendation.

FAQs

What is the 50/30/20 budget rule?

The 50/30/20 rule divides your after-tax income into three categories: 50% for needs (housing, food, utilities, transportation), 30% for wants (entertainment, dining, shopping), and 20% for savings and debt repayment. Your rent falls under the "needs" category and should ideally stay within the 50% allocation.

What is a good DTI ratio for renting?

Landlords typically look for a debt-to-income ratio of 36% or lower, though some accept up to 43%. DTI is calculated by dividing your total monthly debt payments (including rent) by your gross monthly income. A lower DTI indicates you have more financial flexibility.