How to use this calculator
Use a conservative starting point for a housing budget, then add utilities, insurance, transportation and other local costs before signing a lease.
How the rent reference is estimated
The calculator shows rent as a percentage of gross monthly income and also shows rent plus recurring debt payments as a percentage of gross income. Its conservative reference rent is the lower of 30% of gross income or the amount left under a 36% rent-plus-debt ratio.
Example: income, debt and target rent
At $6,000 of gross monthly income, $500 in recurring monthly debt and $1,800 in target rent, the housing ratio is 30% and the modeled rent-plus-debt ratio is about 38.3%. Under this calculator’s conservative formula, the reference rent is $1,660. That is a budgeting signal, not an automatic reason a landlord will accept or reject an application.
Costs the calculator does not include
- Utilities, internet and renters insurance
- Parking, commuting and local transportation
- Application, move-in and lawful deposit amounts
- Taxes and payroll deductions
- Food, health care, family support and savings
Subtract these expenses from take-home pay in a separate monthly budget. Gross income ratios can be useful for comparison, but they do not show how much cash remains after taxes and local living costs.
Landlord screening varies
A landlord may use different income multiples, a tenant-screening report, rental history, references, a guarantor or other lawful criteria. Rules on application fees and deposits also vary by state and city. Read our guides to renting without a U.S. credit history and organizing proof of income.
What the estimate cannot tell you
This tool does not access a credit report, verify income, collect identity information, predict approval or replace provider disclosures. Rates, fees, screening rules and eligibility are controlled by the relevant provider.
Frequently asked questions
Does this predict landlord approval?
No. It is a budget estimator and does not reproduce any landlord’s screening criteria.
Should income be gross or take-home?
The ratio uses gross income before taxes. Build a separate cash budget using actual take-home pay.
Are utilities included in target rent?
No. Enter base rent and then account separately for utilities, insurance, parking and other local costs.