How this calculator works
The common 30%-of-gross-income guideline, the conservative 25%, and a debt-aware figure (36% of income minus debt payments — the way lenders and many landlords screen).
- 30% rule: gross monthly income × 0.30.
- Conservative: gross monthly income × 0.25.
- Debt-aware: gross monthly income × 0.36 − monthly debt payments.
- Landlord 3× rule: gross monthly income ÷ 3.
Worked example
With these inputs: gross monthly income $5,200; monthly debt payments $300.
The result is comfortable rent (30% rule) $1,560.00, with conservative (25%) $1,300.00 and with your debts (36% − debt) $1,572.00. Many landlords require income of at least 3× the rent — the last line is the same rule from the other side.
Which rent number should I use?
The 30% rule is a starting point, not a promise. If you have debt, the debt-aware figure is more realistic, because it keeps rent plus debt payments under 36% of income, the same limit lenders use for debt-to-income.
The landlord 3× line is a ceiling, not a target: it's the most rent many landlords will approve for your income. Renting at that ceiling leaves little room for anything else.
Don't forget the bills that come with rent
Utilities, internet, renters insurance, parking and pet rent can add hundreds a month on top of the rent. Add them to the rent before comparing against your limit. Once you move in, track each one as its own bill so nothing is missed in the first busy month.
Moving mid-month? The Prorated Rent Calculator works out your first or last partial month.
Frequently asked questions
What is the 30% rule for rent?
Spend no more than 30% of your gross (pre-tax) monthly income on rent. On $5,000 a month, that's $1,500.
How much income do I need to rent a $1,500 apartment?
Under the 3× rule, at least $4,500 a month gross, or $54,000 a year. Under the 30% rule, $5,000 a month, or $60,000 a year.
How much rent can I afford making $20 an hour?
At 40 hours a week, $20 an hour is about $3,467 a month gross. 30% of that is about $1,040, and the 3× rule allows about $1,156.
Is the 30% rule based on gross or net income?
Gross. If you prefer to budget on take-home pay, use the 25% line or check the result against the 50/30/20 calculator.