What this number means
The result is a ceiling, not a target. At 30% of a $60,000 income, rent is $1,500 a month, and the calculator also shows the 25% and 35% points so you can see a range. If rent plus your other monthly debts passes about 40% to 45% of gross income, many households find the budget tight, because food, utilities, transport and saving still need room.
How the calculator works
- Divide annual gross income by 12 for monthly gross income.
- Multiply by the share you choose for rent (30% is the common starting point).
- The 3x rule divides monthly gross income by 3, which is the maximum rent many landlords will accept.
- Rent plus your debts is shown as a percentage of gross income as a quick strain check.
Example
| Gross income | Rent at 30% | Landlord 3x cap |
|---|---|---|
| $45,000 | $1,125 | $1,250 |
| $60,000 | $1,500 | $1,667 |
| $80,000 | $2,000 | $2,222 |
| $100,000 | $2,500 | $2,778 |
For a longer explanation with a salary table, read how much rent you can afford on $60,000. To compare renting with buying, see rent vs. buy.
Common questions
How is the rent budget calculated?
Monthly gross income multiplied by the percentage you choose, with 30% as the common benchmark.
What is the landlord 3x rule?
Many landlords require monthly gross income of at least three times the rent.
Is this a guarantee a landlord will approve me?
No. Landlords also check credit, rental history and other factors. This is a planning estimate.