Rent Affordability Calculator
How much rent can I afford?
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 personal 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.
For example, if you like to go out often and shop till you drop, then consider setting your rent budget on the lower end so you can indulge in more of your interests. But 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.
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.
What percentage of my income should go to rent?
Most landlords are looking for tenants that spend no more than 30 percent of their net income on rent. To calculate the rent that’s right 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.
However, there are several factors to consider when calculating the rent that’s right for you: location, family size, current debt, potential utility fees, and lifestyle. Calculate all your costs beforehand so you can determine the most accurate budget.