What Is the Rent-to-Income Percentage?
The rent-to-income percentage shows how much of your monthly take-home or gross income goes toward paying rent. It is one of the simplest measures of housing affordability and is widely used by landlords, lenders, and budget-conscious renters alike. A lower percentage means more of your income is available for other needs, savings, and emergencies.
How to Use This Calculator
Enter your total monthly rent and your monthly income (gross or net — just be consistent). The calculator divides rent by income and multiplies by 100 to give your rent percentage. It also shows how much money you have left each month after rent is paid.
The Formula Explained
The math is straightforward: $$\text{Rent \%} = \frac{\text{Monthly Rent}}{\text{Monthly Income}} \times 100$$. For example, if you pay $1,200 in rent on a $4,000 monthly income, your rent percentage is \((1200 \div 4000) \times 100 = 30\%\). That puts you right at the popular "30% rule" threshold.
Worked Example
Suppose your rent is $1,500 and you earn $5,000 per month. Dividing 1,500 by 5,000 gives 0.30, and multiplying by 100 gives 30%. After rent, you keep \(\$5,000 - \$1,500 = \$3,500\) each month.
FAQ
What percentage of income should go to rent? A common guideline is to spend no more than 30% of your gross income on rent, though high-cost cities often push this higher.
Should I use gross or net income? The 30% rule traditionally uses gross (pre-tax) income, but using net income gives a more realistic picture of your actual budget.
Is it bad to spend more than 30%? Spending 30–50% is considered "cost-burdened" and may strain your budget, but it can still be manageable depending on your other expenses and savings goals.
