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!
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.
Rent Affordability Rule
A common budgeting guideline:
Max Rent =
Monthly Income
3
Example: If you earn $90,000/month, limit rent to $30,000.
Basic Rent Calculation Formulas
A. Monthly Rent per Person (Equal Split)
Per Person Rent =
Total Monthly Rent
3
B. Square Footage-Based Split
Your Rent = (
Your Room's Sq Ft
Total Shared Space Sq Ft
) × Total Rent
C. Prorated Rent (Partial Month)
Daily Rent =
Monthly Rent
Days in Month
Rent Calculation Examples
Example 1: Square Footage-Based Split Total Rent: $45,000/month Room Sizes: Bedroom A: 200 sq ft (with private bath) Bedroom B: 150 sq ft Shared space: 650 sq ft Step 1: Calculate private space value (70% weight) Private Space Rent = 45,000 × 0.70 = $31,500 Step 2: Divide private rent by room sizes
Example 2: Prorated Rent Monthly Rent: $25,000 Move-in Date: 10th of a 30-day month Calculation:
Daily Rent =
25,000
30
= $833.33
Prorated Rent = 833.33 × 21 days = $17,500
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.
