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Rent Calculator

Find how much rent you can afford from your income and debts, using the 30% rule, the landlord 40× rule and a debt check.

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These are common guides, not rules. Landlords set their own income and credit checks, and rent in high-cost cities often takes a larger share of income. Leave room for savings and emergencies.

Quick Answer

A common guide is to spend no more than 30% of your gross income on rent. On $60,000 a year, that is $1,500 a month. Many landlords also want yearly income of at least 40 times the rent, which caps rent at $1,500. After $300 of debts and $150 of utilities, a comfortable rent is about $1,350.

Last updated: 2 November 2026 ·How we calculate this: 30% rule, 40× income rule and a 36% debt check

Table of Contents

How This Rent Calculator Works

Enter your gross yearly income, your monthly debt payments and your expected utilities. The calculator shows three common guides side by side, then gives a comfortable rent: the lower of the 30% rule and a debt-aware limit, minus utilities.

Quick explanation: comfortable rent = the lower of (30% of monthly income) and (36% of monthly income − debts), minus utilities.

  • 30% rule: a long-used guide for housing costs.
  • 40× rule: many landlords want yearly income of 40 times the monthly rent.
  • Debts: car loans, student loans and card payments reduce what is comfortable.

How to Use the Rent Calculator

  1. Enter your gross yearly income before tax, including any co-tenant who will share the lease.
  2. Enter your monthly debt payments, such as car, student loan and card minimums.
  3. Enter expected monthly utilities and renter’s insurance.
  4. Press Calculate.
  5. Compare the comfortable rent with the 30% rule and the landlord 40× rule.

Core Formulas

  • Monthly income: yearly income ÷ 12
  • 30% rule: monthly income × 0.30
  • 40× rule: yearly income ÷ 40
  • Debt check: monthly income × 0.36 − monthly debts
  • Comfortable rent: lower of the 30% rule and the debt check, minus utilities

Key Terms

  • Gross income: income before tax and other deductions.
  • 30% rule: a guide to spend no more than 30% of gross income on rent.
  • 40× rule: a landlord rule that yearly income should be at least 40 times the monthly rent.
  • Rent burden: rent as a share of income. Above 30% is often called cost-burdened.
  • Security deposit: money held by the landlord to cover damage or unpaid rent.

Worked Example

You earn $45,000 a year, pay $500 a month on a car and a card, and expect $120 for utilities.

  • Monthly income = $3,750
  • 30% rule = $1,125
  • Debt check = 3,750 × 0.36 − 500 = $850
  • Comfortable rent = $850 − $120 = $730

Real-Life Examples

  • A first apartment: on $40,000 with no debts, the 30% rule gives $1,000 a month, and a landlord using the 40× rule would accept rent up to $1,000.
  • Sharing with a roommate: two incomes of $45,000 make $90,000, which supports about $2,250 a month under the 30% rule.
  • High debts: on $60,000 with $1,000 of monthly debts, the debt check drops to $800, well below the 30% figure of $1,500.
  • A raise: moving from $55,000 to $65,000 raises the 30% rent from $1,375 to $1,625 a month.

30% Rule vs 40× Rule

  • 30% rule: a budgeting guide for renters. Rent at or below 30% of gross income.
  • 40× rule: a screening rule many landlords use. Yearly income must be at least 40 times the monthly rent.
  • They match: 1 ÷ 40 a year is 2.5% a month of yearly income, which is 30% of monthly income.
  • Some landlords use 3× monthly rent: monthly income of at least 3 times rent, which is about 33%.

Rent by Income

Yearly incomeMonthly income30% rent40× rule maximum
$30,000$2,500$750$750
$40,000$3,333$1,000$1,000
$50,000$4,167$1,250$1,250
$60,000$5,000$1,500$1,500
$75,000$6,250$1,875$1,875
$90,000$7,500$2,250$2,250
$120,000$10,000$3,000$3,000

What Else to Budget For

  • Upfront costs: a security deposit, first month’s rent and sometimes fees.
  • Utilities: ask what is included, such as water, heat or internet.
  • Commute: cheaper rent far away can cost more in travel.
  • Savings: keep money for an emergency fund and other goals, even after rent and bills are paid.

Common Mistakes to Avoid

  • Using take-home pay with the 30% rule. The rule is based on gross income.
  • Forgetting utilities. They can add $100 to $300 or more each month.
  • Ignoring debts. Large monthly payments leave less room for rent.
  • Spending the whole maximum. Leave room for saving and surprises.
  • Forgetting move-in costs. Deposits and fees are due before you move in.

Frequently Asked Questions

Under the 30% rule, about $1,250 a month, before allowing for debts and utilities.

A guide to keep rent at or below 30% of your gross monthly income.

Many landlords want your yearly income to be at least 40 times the monthly rent. For $1,500 rent, that is $60,000.

The 30% and 40× rules use gross income. For your own budget, also check what fits your take-home pay.

Many budget guides include utilities in housing costs, so this calculator subtracts them for the comfortable figure.

It is common in expensive cities. Cut other costs, share the rent, or look for a guarantor or co-signer.

About $80,000 a year under the 40× rule or the 30% rule.

References & Sources

SourceUsed ForLink
Wikipedia, Affordable housing The 30% housing cost guide. https://en.wikipedia.org/wiki/Affordable_housing
Consumer Financial Protection Bureau, Budgeting Help with making a budget. https://www.consumerfinance.gov/consumer-tools/