BCBetter Calculators

Rent Affordability Calculator

Find out how much rent you can afford based on your income and expenses.

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Enter your values and click Calculate

How It Works

The 30% rule states that your recommended maximum rent equals your gross monthly income multiplied by 30%. This is the threshold most commonly used by landlords, lenders, and housing programmes to assess rental affordability. The 25% rule is a more conservative threshold recommended by some financial advisors, particularly for those with significant debt obligations or irregular income. Remaining budget is calculated as monthly income minus the 30% rent maximum minus monthly debt payments — this figure shows how much is left each month for food, utilities, savings, and discretionary spending. The assessment verdict compares your current or target rent directly against your income as a percentage, placing it in one of four bands: comfortable (≤25%), manageable (25–30%), stretched (30–40%), or high risk (above 40%).

Examples

$5,000/month income, $300 in debts
A single earner in a mid-cost city.
Result: Max rent ~$1,500 (30%). $1,500 at 30% — comfortable.
$8,000/month income, $600 in debts
A higher earner evaluating a more expensive rental.
Result: Max rent ~$2,400 (30%). $2,800 at 35% — stretched.
$3,500/month income, no debts
An entry-level worker in a lower cost-of-living area.
Result: Max rent ~$1,050 (30%). $900 is comfortable at 25.7%.

Frequently Asked Questions

Should I use gross or take-home income?
The 30% rule traditionally uses gross (pre-tax) income, which is the standard used by landlords and lenders. For a more practical personal budget, apply the same calculation to your take-home pay — this gives a stricter, more realistic limit that accounts for actual money available.
What counts as monthly debt payments?
Include the minimum payments on car loans, student loans, personal loans, and credit cards. Do not include recurring bills like utilities, subscriptions, or groceries — those are spending categories, not debt obligations, and come out of your remaining budget after rent.
What if rent exceeds 30% of my income?
Exceeding 30% is common in high-cost cities, but it requires careful management of other expenses. If your rent is above 30%, look for ways to reduce other spending categories, increase income, or explore options like roommates to bring your housing cost ratio back into a sustainable range.

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