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Rent Affordability Calculator

Affordable rent, with the income basis stated. The thirty percent rule was written against take-home pay and is routinely applied to gross, which sets the budget too high by whatever you pay in tax.

Also called: how much rent can i afford, 30 percent rent rule.

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That income is
%
₹
₹
%
Rent you can afford
₹36,000

₹36,000 a month at 30% of take-home income. With 5,000 of utilities the full housing cost is ₹41,000, or 34.17% of income. You would need ₹1,08,000 upfront. Computed on take-home pay, which is the basis the thirty percent rule was written against. No existing debt entered. Any loan or card payment reduces what is genuinely available for rent.

Rent plus utilities
₹41,000
Housing as a share of income
34.17%
Deposit and first month
₹1,08,000
Affordable rent allowing for existing debt
₹36,000
Income a landlord would require
₹0
Annual housing cost
₹4,92,000
Income basis
take-home
On the basis
Computed on take-home pay, which is the basis the thirty percent rule was written against.
On existing debt
No existing debt entered. Any loan or card payment reduces what is genuinely available for rent.
How this is calculated

An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.

Method and background

How this is calculated

The share applies to income, less existing debt payments, which reduce what is genuinely available. The basis matters more than the percentage: thirty percent of gross and thirty percent of take-home differ by the tax rate, and for a higher-rate taxpayer that is a third of the answer. Utilities are separated because the rule covers rent alone while the bill covers the household, and landlords commonly require an income multiple that is a separate test from what you can afford.

the thirty percent rule is stated on take-home pay and quoted on gross, which changes the answer by the tax rate
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Income
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Share

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

thirty percent of take-home

Monthly income
₹1,20,000
That income is
Take-home, after tax
Share of income for rent
30%
Existing monthly debt payments
₹0
Utilities and maintenance
₹5,000
Deposit in months of rent
2
Income multiple landlords require
0%

Rent you can afford₹36,000

30% of 1,20,000; deposit is two months plus the first

Open this example

existing debt reduces what is available

Monthly income
₹1,20,000
That income is
Take-home, after tax
Share of income for rent
30%
Existing monthly debt payments
₹12,000
Utilities and maintenance
₹5,000
Deposit in months of rent
2
Income multiple landlords require
40%

Rent you can afford₹36,000

boundary: the debt comes straight off the rent budget

Open this example

Method and limits

What it assumes

  • A single household income. Joint applications usually combine incomes.

What it deliberately does not model

  • The thirty percent rule dates from mid-century US housing policy and fits high-cost cities badly.
  • Landlord income multiples vary and are a separate constraint from affordability.
  • It ignores everything else in the budget, so passing this does not mean the budget works.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Is the 30 percent rule on gross or take-home?
Take-home, as originally stated. Applying it to gross sets the budget too high by your tax rate, which for a higher-rate taxpayer is a substantial difference.
Why do landlords want a multiple of the rent?
It is their affordability test rather than yours, commonly thirty to forty times the monthly rent as annual income. Passing your own budget does not guarantee passing theirs.