$7,000 income, $800 debts, 36% DTI, 30% income target
- Max rent by DTI ≈ $1,720
- Max rent by 30% ≈ $2,100
- Recommended ≈ $1,720
finance calculator
Rent Affordability Calculator
Estimate how much rent you can afford using both income-percentage and debt-to-income guidelines.
Results
- Max rent by DTI rule
- $1,720
- Max rent by % of income
- $2,100
- Recommended max rent (lower of the two)
- $1,720
How to use this calculator
- Enter your gross monthly income.
- Enter your other monthly debts (minimum payments).
- Set a DTI cap (e.g., 36%) and a percent-of-income target (e.g., 30%).
- Review the two limits and use the lower number as your safe max rent.
Inputs explained
- Other debts
- Minimum payments on credit cards, auto/student/personal loans, etc.
- DTI limit
- Common caps are 36–40%; lower is safer.
- Income percentage
- 30% is a common guideline; lower if you want more buffer.
How it works
Max rent by DTI = (Income × DTI%) − other monthly debts.
Max rent by percent = Income × chosen income percentage (e.g., 30%).
Recommended rent is the lower of the two for a conservative ceiling.
Formula
Max rent (DTI) = Income × DTI% − Other debts Max rent (% income) = Income × Target% Recommended = min(DTI-based rent, % income rent)
When to use it
- Setting a rent budget before apartment hunting.
- Comparing rent ceilings when debts are high vs low.
- Using the lower of DTI vs income% to stay conservative in expensive markets.
Tips & cautions
- Factor in utilities, renters insurance, parking, and commuting costs in your budget even though they’re not in the formula.
- If debts are temporary (e.g., a near-term payoff), you can rerun with lower debts to plan future affordability.
- Use a lower income percentage in high cost-of-living areas to leave room for savings.
- Gross income used; net take-home may be lower depending on taxes/withholding.
- Does not include utilities, insurance, parking, or other living costs—budget those separately.
- DTI rules vary by landlord; this is a conservative guideline, not an approval.
Worked examples
$9,000 income, $1,200 debts, 40% DTI, 28% income target
- Max rent by DTI ≈ $2,400
- Max rent by 28% ≈ $2,520
- Recommended ≈ $2,400
Deep dive
This rent affordability calculator shows the maximum rent you can afford using both a DTI cap and a percent-of-income rule, then gives you the safer number.
Use it to set a rent budget that fits your debts and income before signing a lease.
FAQs
- Gross or net income?
- This uses gross monthly income. If you want net, adjust the income down to your take-home.
- Should utilities be included?
- They’re not in the formula. Budget utilities, parking, renters insurance, and internet separately.
- What DTI should I use?
- 36% is a common conservative cap; some landlords use higher. Lower is safer if you want more savings room.
- Does rent-to-income always need to be 30%?
- No—it’s a guideline. Adjust up/down based on your budget, debts, and savings goals.
- Can I include roommates?
- You can enter combined income/debts if sharing rent. Be conservative to avoid being stretched.
Related calculators
Estimates only. Landlord criteria and personal budgets vary. Consider taxes, utilities, insurance, and savings goals when setting a rent budget.