Rent Calculator

Use this calculator to easily calculate the rent you can afford given your current income and expenses.

    Calculation results

Low risk rent $625 / month    
Medium risk rent $1,042 / month    
High risk rent $1,458 / month    
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Rent affordability

Rent affordability is the monthly sum you can dedicate to rent payments and still be financially in the positive at the end of the year, if not at the end of each month. For example, if your monthly income is $5,000 and you are paying a student loan of $1,000 per month, and have expenses for utilities, food, transportation, and leisure of about $2,500, then the remaining sum $1,500, which is what you would be able to pay for rent, if all other factors remain constant.

However, life is naturally uncertain: your income might change in a negative fashion, you might incur larger expenses in some months, due to unexpected medical bills, fines, unplanned vacation that you really, really want to go on, and so on. Therefore, it is always wise to have spare money at the end of the month which you will put aside in good months, and in months with extra expenses you can use this "cushion" to remain cash-positive. Estimating the rent you can afford requires that you engange in cash flow management. This rent affordability calculator can be a useful assistant in this task of financial risk management.

Rent risk levels defined

We define risk levels used in this rent calculator as follows. If regular expenses are not specified, we define low risk as 15%, medium risk as 25% and high risk as 35% of the remaining income - net income minus recurring debt. This is based on assumptions about your monthly expenses that might or might not be close to your particular situation. If regular expenses are specified, we define low risk as 70%, medium risk as 80% and high risk as 90% of the remaining income - net income minus recurring debt minus regular expenses. The risk rises as the income left to cover unexpected and irregular expenses decreases.

How to calculate rent affordability?

To calculate rent affordability using our rent calculator, simply enter your net income after taxes (yearly or monthly salary, or salary equivalent to an hourly rate), your recurring debt (e.g. car loan, student loan) and, optionally, your regular expenses for food, transportation, utilities, and luxuries. The calculator will convert everything to monthly figures and then determine the rent you can afford depending on the amount of risk you are willing to incur.

The mathematics are those of simple percentage multiplication, as specified in the risk levels section above. So, a low risk rent is calculated as 70% x Disposable Income if monthly expenses are accounted for, and 15% x Disposable Income if monthly expenses were not specified. For a more accurate rent affordability estimate we recommend that you enter your average monthly expenses.

Illustrative Examples

The table below presents estimated low risk monthly rent affordability for several different scenarios with the main variables being net income, recurring debt (e.g. credit card debt, loans, etc.), and regular expenses (food, utilities, insurance, fuel, etc.).

Scenarios for rent expenses at low risk
VariablesScenario 1Scenario 2Scenario 3
Net Monthly Income $3,000 $6,000 $9,000
Recurring Monthly Debt $800 $1,200 $2,000
Regular Monthly Expenses $1,000 $2,200 $3,000
Affordable Monthly Rent $840 $1,820 $2,800

All numbers were calculated using our tool.

Financial caution

This is a simple online tool which is a good starting point in estimating the rent you can afford but is by no means the end of such a process. You should always consult a qualified professional when making important financial decisions and long-term agreements, such as rental agreements. Use the information provided by the calculator critically and at your own risk.

Cite this calculator & page

If you'd like to cite this online calculator resource and information as provided on the page, you can use the following citation:
Georgiev G.Z., "Rent Calculator", [online] Available at: URL [Accessed Date: 17 Apr, 2021].