📖 Overview
Use this calculator to benchmark housing affordability against income.
⚙️ How It Works
This calculates housing burden by dividing monthly rent by gross monthly income and expressing it as a percentage.
The Formula
Rent-to-Income % = (Monthly Rent ÷ Gross Monthly Income) × 100
| Rent | Total monthly rent payment |
| Income | Gross monthly income before taxes |
💡The classic "30% rule" means keeping rent below 30% of gross income. In high-cost cities many people exceed this — pair with a full budget review to assess real impact.
Quick Reference
| Ratio | Housing Burden | Typical Guideline |
|---|---|---|
| < 25% | Low | Plenty of room for savings and other expenses |
| 25–30% | Moderate | Widely accepted affordability threshold |
| 30–40% | High | Many lenders flag as cost-burdened |
| > 40% | Very High | Severe housing burden; financial stress risk |
Practical Tips
💡 Use this to compare rental options objectively.
💡 Consider utilities separately for a fuller housing-cost view.
💡 Re-run after salary or rent changes.
Frequently Asked Questions
❓ Is lower always better?
Generally yes for flexibility, but context like debt and savings matters.
❓ Can this guide relocation decisions?
Yes, it helps compare affordability across neighborhoods or cities.