Rent Calculator
Our Rent Calculator helps you determine how much rent you can afford based on your income and budget. Just enter your monthly earnings and expenses to get an instant, accurate result. This tool is perfect for renters planning housing costs and making smart financial decisions. Easy to use and free!
Share This Calculator
What is Rent?
In this article, we will learn about two usual meanings of rent.
1. Payment for using something: It is the most common use of this word. Rent is a regular payment. When you decide, you ask another person for the right to use something of theirs. The most common type of rent is for a place to live. To live in a place, the person pays rent to the landlord of a place such as an apartment house, house, or other building. You can rent cars, furniture, appliances, or clothes.
2. Income from property (less common):
When you have a property, it is your income if you rent it out. Rent has also been defined as the income a property owner earns when someone rents out their property. The rent I receive from my apartment building is my property income, for example.
How can one find out how affordable the rent is?
Let’s now understand how rent works on a basic level. People will often give you advice to spend less than 30% of your income on your rent. We have provided some examples here.
Example 1
Monthly income: $3,000
Mortgage rate (30%) = $900
In this case, paying off a mortgage of $900 would meet the proposed affordability threshold.
Example 2
Monthly income: $4,500
Affordable mortgage (30%): $1,350
The 30% rule helps balance the budget even with a large salary. This option guarantees that you will have enough money to cover other important expenses.
Rent Example
| Basic | Person 1 | Person 2 | Person 3 |
|---|---|---|---|
| Net Monthly Income | $3,000 | $4,000 | $5,000 |
| Recurring Monthly Debt | $800 | $1,000 | $1200 |
| Regular Monthly Expenses | $1,000 | $1500 | $2,000 |
| Affordable Monthly Rent | $840 | $980 | $1150 |