$60,000 a year, no debts.
Gross is $5,000 a month. The 30% rule and the 40× screen both give $1,500.00. The 3× screen gives $1,666.66. With 20% for taxes, take-home is $4,000 and 50/30/20 allows $2,000 before any other bills.
Rent Affordability Calculator
See how much rent you can afford under the 30% rule, 50/30/20 and the income checks landlords use.
Results
Enter your numbers to see the results.
- Monthly gross
- Estimated take-home
- Monthly take-home
| Rule | Maximum rent | Rent as % of gross | Note |
|---|
- Income per year (30% rule / 40×)
- Income per month (3× screen)
These are rules of thumb, not lending rules or a guarantee that a landlord will approve you. Taxes, debts, family size and local prices all change what's comfortable. Landlord screens vary, so ask the property what it requires.
Enter your income, and the calculator shows the most rent you can afford by each common rule, side by side. The rules often disagree, and that's useful: the lowest number is the safest, and the highest is roughly what a landlord might accept. Add your monthly debt payments and other essentials for a more honest answer. Already have an apartment in mind? Switch to the reverse mode to see the income it takes to rent it.
How to use it
- Enter your income and say whether it's per year, month, two weeks or week.
- Choose gross (before tax) or take-home (after tax). If you enter gross, the tool assumes 20% goes to taxes and deductions for the 50/30/20 row. Change that if you know better.
- Add monthly debt payments, such as a car loan, student loans and card minimums.
- Add other monthly essentials: utilities, groceries, insurance, transport, childcare.
- Read the table. For the other direction, enter a monthly rent to see the income it needs.
The rules in plain English
- 30% rule. Spend no more than 30% of your income on rent. HUD calls households paying more than 30% of income on housing "cost burdened," which makes it a benchmark more than a lending rule (HUD USER on rental burdens). If you only enter take-home pay, the tool applies 30% to that, which is stricter.
- Debt-adjusted. Your rent and your debt payments together stay under 36% of gross income, and rent stays under 30%. Whichever limit is lower wins, and the tool tells you which one it was.
- 50/30/20. Half of take-home pay goes to needs, 30% to wants and 20% to savings and extra debt payments. Rent comes out of the needs half, after your other essentials and minimum debt payments.
- Landlord 40×. Many landlords want yearly gross income of at least 40 times the monthly rent. That works out to the same thing as rent being 30% of gross income. It's the standard screen in New York City, where a guarantor is often asked to show 80×.
- Landlord 3×. Others want monthly gross income of at least 3 times the rent, which allows rent up to about 33% of gross.
How it works
All results come from your exact monthly income, then are shown to the cent. Weekly and biweekly pay are converted with 52 ÷ 12 and 26 ÷ 12, so a biweekly paycheck isn't treated as two a month. Maximum rents are ceilings, so they round down: $5,000 ÷ 3 is $1,666.666…, shown as $1,666.66.
- 30% rule = 30% × monthly gross income.
- Debt-adjusted = the smaller of 30% × gross, or 36% × gross − monthly debts.
- 50/30/20 = 50% × take-home − essentials − debts.
- Landlord 40× = yearly gross ÷ 40. Landlord 3× = monthly gross ÷ 3.
- Income needed for a rent = rent × 40 per year, or rent × 3 per month.
Worked examples
$75,000 a year with $450 in debts.
The 30% rule gives $1,875.00, but 36% of $6,250 is $2,250, and after $450 of debts that leaves $1,800.00. The debt limit is the one that binds. 50/30/20 is $2,500 − $450 = $2,050.00.
Take-home of $4,150 a month, $970 in essentials and $200 in debts.
30% of take-home is $1,245.00. Half of take-home is $2,075. Subtract essentials and debts and 50/30/20 leaves $905.00.
$85,000 a year and 22% for taxes, $900 in essentials.
Gross is $7,083.33 a month and take-home is $5,525.00. The 30% rule gives $2,125.00. 50/30/20 gives $2,762.50 − $900 = $1,862.50. The 3× screen is $2,361.11.
Take-home of $3,200 a month.
30% of take-home is $960.00. The tool labels it that way, because most rules use gross.
Biweekly pay of $2,000.
That's $4,333.33 a month, not $4,000. The 30% rule gives $1,300.00.
Debts bigger than the cap.
$48,000 a year with $1,500 a month in debts. 36% of $4,000 is $1,440, which is less than the debts, so the debt-adjusted rent is $0.00 and the tool says so. The 30% rule would still show $1,200.00.
Working backward.
For a $2,150 apartment, 40× means $86,000 a year of gross income, and 3× means $6,450 a month. For $1,333.33 of rent, that's $53,333.20 a year and $3,999.99 a month.
Income needed at a glance
| Annual gross income | 30% rule / 40× | 3× monthly screen |
|---|---|---|
| $36,000 | $900.00 | $1,000.00 |
| $48,000 | $1,200.00 | $1,333.33 |
| $60,000 | $1,500.00 | $1,666.66 |
| $72,000 | $1,800.00 | $2,000.00 |
| $90,000 | $2,250.00 | $2,500.00 |
FAQ
How much rent can I afford on my salary?
A common starting point is 30% of your gross monthly income. On $60,000 a year, that's $1,500 a month. If you carry debt, or you're paying for childcare or a long commute, a smaller number may be safer. Use the table to see where the rules agree.
What is the 30% rule for rent?
It says to spend no more than 30% of your income on housing. HUD uses 30% as the line for being cost burdened. It's easy to calculate, but it ignores your taxes, debts and cost of living, which is why this tool shows several rules.
Should I use gross or take-home pay?
Landlords and the 30% rule usually use gross pay. The 50/30/20 budget uses take-home pay. If you only know your take-home, enter that, and the tool uses it where it matters. The landlord rows and the debt-adjusted row are hidden, because they need gross income, and the tool says "Enter gross income to see this."
What is the 40× rent rule?
Landlords, especially in New York City, often ask that your annual gross income be at least 40 times the monthly rent. A $2,150 rent needs $86,000. It's the 30% rule with different wording.
What is the 3× rent rule?
Some landlords ask for monthly gross income of at least three times the rent. For $1,800 rent, that's $5,400 a month. It's a bit looser than the 40× rule.
Do landlords count roommates' income?
Many do, if everyone is on the lease. Apply each person's income to their share of the rent, or add the incomes together and use the total rent. Policies differ, so ask.
Does this work for Section 8?
No. Housing Choice Vouchers and public housing use a different calculation. Your share is generally based on 30% of your adjusted income, which subtracts certain deductions, and the program pays part of the rent. See HUD's Housing Choice Voucher page or contact your local housing authority.
Does the rent figure include utilities?
No, rent is the lease amount. Put what you pay for utilities in "other monthly essentials" so the 50/30/20 row accounts for it.
Can I afford more than the 30% rule says?
Sometimes. Someone with high income and low debt can pay more than 30% and still save. Someone with a lower income may be stretched at 30%. Use the 50/30/20 row and your own budget to decide.
What if my rent and debts are already too high?
The tool shows $0.00 and says how much of your income the debts already use. Paying down balances raises the figure. The credit card payoff calculator can help you plan that.