Rent Affordability Calculator

How much should I spend on rent?

While there’s no one-size-fits-all answer, most guidance is to spend no more than 30 percent of your income on rent. The actual amount of rent you can afford depends on your income and lifestyle. Consider your monthly income and factor in your various expenses such as groceries, gas, student loans, or medical bills to estimate what you can comfortably afford.

How to calculate monthly rent based on income

Most landlords are looking for tenants that spend no more than 30 percent of their gross income on rent. To calculate the rent that’s right for you, start by finding 30 percent of your monthly pre-tax income. For example, if you make $60,000/year before taxes ($5,000/month), you should aim to spend no more than $1,500 on monthly rent before considering savings and recurring costs.

To make sure your budget works for you, factor in your monthly expenses and how much money you want to save. If you exceed your overall budget, then you might need to lower the amount of rent you can realistically afford each month. Other factors to consider include location, family size, current debt, potential utility fees, and lifestyle. By working out all your costs before signing a lease, you can confidently determine what you can afford in rent without financial strain.

What is the 50/30/20 rule?

The 50/30/20 rule is a technique to split your income into three categories: 50 percent for essential living expenses, 30 percent for non-essential daily expenses, and 20 percent for savings and retirement. Input your information into this rent calculator to review your personalized 50/30/20 budget estimates.

Remember that this tool is a guideline. Consider your lifestyle as you make your budget. For example, if you like to go out often and shop ‘til you drop, then consider setting your rent budget on the lower end so you can indulge in more of your interests. If you’re more of a homebody who doesn’t spend a lot of money on leisure, then invest more into your rent budget so you can afford a nicer apartment.

How does our rent affordability calculator work?

The Apartments.com Rent Affordability Calculator is a tool designed to help you determine how much rent you can afford based on your monthly income before taxes (gross income). Here's how it works:

1. Input your gross income: This is your income before deductions such as taxes and social security contributions have been subtracted.
2. Input the percentage of your income that you’re willing to spend on rent: The general rule of thumb is to spend no more than 30% of your income on rent.
3. Calculate your rent budget: Based on the information you provide, the calculator will estimate how much rent you can afford to pay each month.

Remember, the actual amount of rent you can afford is highly personal and depends on your lifestyle and long-term financial goals.