What This Calculator Does
This tool shows what share of your gross income is consumed by rent. Knowing this percentage helps you judge whether your housing costs are sustainable and how much room you have left for savings, food, transport, and other living expenses.
How to Use It
Enter your monthly rent and your gross annual salary (before tax). The calculator annualizes your rent by multiplying it by 12, divides that by your salary, and multiplies by 100 to give a clean percentage. It also displays your total annual rent and your gross monthly salary for context.
The Formula Explained
The math is simple:
$$\text{pct} = \frac{\text{monthlyRent} \times 12}{\text{annualSalary}} \times 100$$
Multiplying monthly rent by 12 converts it to an annual figure so it lines up with your annual salary. Dividing one annual number by the other gives a fraction, and multiplying by 100 turns it into a percentage.
Worked Example
Suppose your rent is $1,200 a month and you earn $60,000 a year. Annual rent is \(1{,}200 \times 12 = \$14{,}400\). Dividing by 60,000 gives 0.24, and multiplying by 100 gives 24%:
$$\frac{1{,}200 \times 12}{60{,}000} \times 100 = 24\%$$
That sits comfortably under the popular 30% guideline.
FAQ
What is the 30% rule? A common rule of thumb says you should spend no more than 30% of gross income on rent. Above that, budgets often get tight.
Should I use gross or net salary? This calculator uses gross (pre-tax) salary, which is the standard basis for the 30% rule. If you prefer, you can enter your after-tax annual income instead to see the share of take-home pay.
Does this include utilities? No—only the rent you enter. To include utilities, add your average monthly utility cost to the rent figure.
