Cap rate, NOI, DSCR and rental calculators

Rent to Income Ratio Calculator

Enter the rent and the gross income to see the rent-to-income ratio, the income needed for a rent and the highest rent an income supports.

The rent to income ratio calculator shows how much of a gross income goes to rent. You enter the monthly rent and the income, as a monthly, yearly, two-weekly or weekly amount, and it gives the ratio as a percentage. It also gives the income needed for that rent at a limit you choose, such as 30%, the highest rent an income supports, and whether the income is a set multiple of the rent, such as 3 times. A second applicant’s income can be added. It runs in your browser, is free, and nothing you type is uploaded. It does arithmetic only, because each landlord or program sets its own rules.
Rent to income ratio calculator example

How to use the Rent to income ratio calculator

  1. Enter the “Monthly rent”.
  2. Enter the “Gross income (before tax)” and choose whether it is per month, year, two weeks or week under “Income is per”.
  3. If a second person’s income counts, enter it under “Second applicant’s gross income”, in the same period. Leave it at 0 otherwise.
  4. Open “More options” to change the “Highest rent share of income you want to test” (30% by default) and the “Income multiple to test” (3 by default).
  5. Read the results: the rent to income ratio, the income as a multiple of rent, the check against your limit and your multiple, the gross monthly income, the monthly and yearly income needed, the highest rent at your limit and the income left after rent.
  6. Look at the table to see the income needed for your rent at 25%, 30%, 33%, 35%, 40% and 50%. “How it was calculated” lists each step.

Three presets load examples: a single monthly income, two yearly incomes, and weekly pay with a 33% limit. “Copy link” reopens your inputs on any device, “Print / save result” makes a one-page sheet you can save as a PDF, and “Reset” restores the first example. The examples are only starting values, so replace them with your own rent and income before you use any result.

How do you calculate rent to income ratio?

Divide the monthly rent by the gross monthly income and multiply by 100. In the default example the rent is $1,500 and the income is $4,800 a month, so the ratio is 1,500 / 4,800 = 31.25%. Yearly income is divided by 12 first, weekly income is multiplied by 52 and divided by 12, and two-weekly income is multiplied by 26 and divided by 12.

How much income do you need for a given rent?

Divide the rent by the ratio you want. For $1,500 at 30%, the income needed is 1,500 / 0.30 = $5,000 a month, or $60,000 a year. The table under the result repeats this for other ratios. A lower ratio needs a higher income: at 25% the same rent needs $6,000 a month.

How much rent can an income support?

Multiply the monthly income by the ratio. A gross income of $4,800 a month at 30% supports a rent of 4,800 × 0.30 = $1,440. The result “Highest rent at your limit” shows this figure. The table shows the highest rent at your income for each share too.

What is the income multiple rule?

Some landlords ask for monthly income of a set multiple of the rent, such as 2.5 or 3 times. For a $1,500 rent and a multiple of 3, the income needed is $4,500 a month. The default income of $4,800 is 3.2 times the rent, so it meets a multiple of 3. A 3-times rule equals a limit of 33.3%, because 1 / 3 = 0.333.

What is the income left after rent?

The result “Income left after rent (before tax)” is the gross monthly income minus the rent. In the default example it is $4,800 − $1,500 = $3,300. Because the income is before tax, this is not money you can spend; it only shows the size of the gap that the rest of the household budget has to fit into.

Does the ratio use gross or net income?

The tool uses gross income, before tax and deductions, because that is how rules of thumb are usually written. If a rule uses take-home pay, enter that amount instead. The tool does not work out tax.

Frequently asked questions

What is a good rent to income ratio?

The tool does not judge. A common rule of thumb is 30%, and some people use 25% or 33%. Enter the limit you want to test.

Can I add a roommate or co-signer?

Yes. Enter their gross income under “Second applicant’s gross income”, in the same period. The tool adds the two incomes.

Is the 3 times rent rule the same as 33%?

Almost. Income of 3 times the rent means the rent is 33.3% of income. The tool shows both views.

Does the tool tell me whether I will be approved?

No. Landlords, lenders and housing programs set their own rules and may count income, credit and savings differently. The tool only does the arithmetic.

Does the tool save my numbers?

No. It runs in your browser and nothing is uploaded. Use “Copy link” or “Print / save result” to keep a calculation.

Why is yearly income divided by 12?

Rent is paid monthly, so the tool puts every income on a monthly basis before it divides. A yearly income is divided by 12, a weekly one multiplied by 52 and divided by 12, and a two-weekly one multiplied by 26 and divided by 12.

Can I use the results in a document?

Yes, in commercial work without attribution. Check the figures against your own records.