What this calculator tells you
The ratio shows how much of the income figure you entered goes to rent. It is a descriptive planning number, not a universal rule for what any household can or should afford.
Formula
Worked example
Useful for
- Seeing how strongly rent affects monthly cash flow
- Comparing housing options using the same income basis
- Stress-testing a budget after a rent or income change
Common mistakes
- Comparing a ratio based on gross income with another based on take-home income.
- Ignoring utilities, transport and other costs that can change with housing location.
- Treating one percentage threshold as appropriate for every household or city.
How to get a more useful estimate
Use inputs that match the decision you are actually making. If a price, rate, efficiency or usage figure can vary, run the calculator more than once with a low, expected and high case. Keep units consistent, avoid rounding intermediate values too early, and separate costs that this calculator does not include.
Frequently asked questions
Should I use gross or take-home income?
This page labels the input as take-home income. Use the same definition when comparing scenarios.
Is 30% always affordable?
No. Affordability depends on other obligations, household needs and local costs.
Does this include utilities?
No. The ratio uses only the rent amount you enter.
Related tools and guides
This calculator is a planning tool. For contracts, taxes, regulated charges, loans or other decisions with legal or financial consequences, verify the final figures and terms with the relevant provider or authority.