Rent vs. Salary Calculator
Formula
Max Rent = Annual Salary × Rent% ÷ 12
The '30% rule' suggests spending no more than 30% of your gross income on rent. Financial advisors consider this the safe upper limit. Some people in high-cost cities spend 40-50%, but this leaves less for savings, food, and emergencies.
How to use
- Enter your gross pay in the Annual Salary field.
- Set your target percentage in the Max Rent (%) field.
- Read your max monthly rent and what's left over.
Example
On a $50,000 salary at 30%: $50,000 × 30 ÷ 100 ÷ 12 = $1,250 max monthly rent, leaving about $2,917 of gross income.
Frequently Asked Questions
What is the 30% rule for rent?
The 30% rule says your monthly rent should not exceed 30% of your gross (pre-tax) monthly income. On a $50K salary, that's $1,250/month max.
Should I use gross or net income?
The traditional 30% rule uses gross (pre-tax) income. However, many financial planners now recommend using net (take-home) pay for a more realistic budget.
What if I can't find rent under 30%?
In expensive cities, 30% may not be realistic. Consider roommates, different neighborhoods, or adjusting to 35-40% — but reduce spending elsewhere to compensate.
What is the 50/30/20 rule?
The 50/30/20 rule allocates 50% of income to needs (including rent), 30% to wants, and 20% to savings. Under this rule, rent could be up to 30-35% since other needs are included in the 50%.
How much rent can I afford on a $60,000 salary?
Using the 30% rule, $60,000 × 30% = $18,000 per year, or about $1,500 per month in gross rent. Many landlords apply a related screening standard requiring your annual income to be at least 40 times the monthly rent, which lands in the same neighborhood. Remember these are pre-tax figures, so your real budget after taxes will feel tighter.
Do landlords have income requirements for renters?
Yes — most landlords and property managers want your gross monthly income to be about 2.5 to 3 times the monthly rent, which mirrors the 30% rule from the renter's side. Some apartments phrase this as needing an annual salary of 40x the monthly rent. If your income is below the threshold, a co-signer, guarantor, or several months of rent paid upfront can sometimes satisfy the requirement.