Skip to content
ENExplore Calculators

Rent To Income Ratio Calculator

Work out rent to income ratio instantly with clear inputs, formula shown and shareable results.

About Rent To Income Ratio Calculator

The thirty percent rule of thumb holds that rent should not exceed thirty percent of gross income. Landlords and letting agents usually test the wider figure too, adding loan and card payments, because a tenant at twenty-five percent rent but fifty percent total obligations is the higher risk.

Formulas

Rent to income

Ratio = monthly rent / gross monthly income x 100

Affordable rent

Guideline rent = gross income x 0.30

Worked example

With the default values below, Rent To Income Ratio Calculator returns Rent to income ratio of 27.78%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Monthly rentminimum 0
25,000
Gross monthly incomeminimum 0.01
90,000
Other monthly debt paymentsminimum 0
8,000

Results

Rent to income ratio
27.78% %
Total obligations to income
36.67% %
Rent at the 30 percent guideline
$27,000.00
Headroom against the guideline
$2,000.00

Step by step

  1. 1Values used
  2. 2Rent to income
  3. 3Affordable rent
  4. 4Rent to income ratio= 27.78 %
  5. 5Total obligations to income= 36.67 %
  6. 6Rent at the 30 percent guideline= 27,000.00
  7. 7Headroom against the guideline= 2,000.00

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is the Rent To Income Ratio figure worked out?

Ratio = monthly rent / gross monthly income x 100. The thirty percent rule of thumb holds that rent should not exceed thirty percent of gross income.

Is thirty percent still realistic?

In high cost cities it often is not, and forty to fifty percent is common. The threshold matters less than whether the residual income after rent covers the household's actual costs.

What values do I need to enter?

This calculator takes 3 inputs: Monthly rent, Gross monthly income, Other monthly debt payments. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.

Related Calculators

Rent To Income Ratio Calculator | Calcrivo