How the calculator works
- Income: your household’s income before tax, for everyone who’ll pay the rent.
- Debts: monthly loan and card payments.
- Result: rent at 30% of your income, with a comfortable level (25%) and a stretched one (35%). If debts would take you over 40% of your income, the rent is lowered.
Rent by income
Rent a month, with no debts:
| Income before tax | Comfortable (25%) | 30% rule | Stretched (35%) |
|---|---|---|---|
| $30,000 | $625 | $750 | $875 |
| $40,000 | $833 | $1,000 | $1,167 |
| $50,000 | $1,042 | $1,250 | $1,458 |
| $60,000 | $1,250 | $1,500 | $1,750 |
| $75,000 | $1,563 | $1,875 | $2,188 |
| $100,000 | $2,083 | $2,500 | $2,917 |
| $150,000 | $3,125 | $3,750 | $4,375 |
Debts only lower the rent once rent and debt payments together would pass 40% of your income. On $60,000 a year, debt payments of $300, $600 and $900 a month leave rent of $1,500, $1,400 and $1,100.
Income needed for common rents
| Rent a month | Income for the 40x check | An hour, full time | To move in |
|---|---|---|---|
| $1,000 | $40,000 | $19.23 | $2,000 |
| $1,500 | $60,000 | $28.85 | $3,000 |
| $2,000 | $80,000 | $38.46 | $4,000 |
| $2,500 | $100,000 | $48.08 | $5,000 |
| $3,000 | $120,000 | $57.69 | $6,000 |
The 40x check and the 30% rule give the same answer, because a 40th of a year’s income is 30% of a month’s. To move in, the table counts the first month’s rent and a security deposit of one month’s rent. Deposit rules vary by state, and some landlords also charge application fees.
Which income counts
Use income before tax for everyone on the lease. Landlords usually ask for pay stubs, a job offer letter or tax returns to prove it. If you’re paid by the hour, multiply your hourly rate by your usual hours a week, then by 52; the hourly to salary calculator works it out.
Before you sign
- Budget for the extras: utilities, internet and renters insurance usually come on top.
- Check what’s left: the 30% rule uses income before tax. The paycheck calculator shows your take-home pay, and the budget calculator what’s left after rent.
- Check your credit: most landlords run a credit check. See credit scores explained.
- Read the lease: how long it runs, what happens if you leave early, and who pays for repairs.
- Think about buying later: the rent vs buy calculator compares the two.