Rent Calculator

Find out how much rent you can afford based on your monthly income and budget.

Loan Details

5%36%
1 yr10 yrs

Monthly EMI

₹11,122

Total Amount Payable

₹6,67,333

Principal

₹5,00,000

Total Interest

₹1,67,333

Rent Calculator Formula & How It Works

Max Rent = Monthly Take-Home Income × 0.30
  • 30% rule: keep rent ≤ 30% of gross monthly income
  • Stricter rule: rent ≤ 30% of net (take-home) income
  • 50/30/20 variant: needs (incl. rent) ≤ 50% of take-home pay

The 30% rule is the most widely used rent guideline: spend no more than 30% of gross monthly income on rent. In high-cost cities, many residents exceed this, but staying under 30% ensures you have budget for other financial goals. Use net income as a stricter measure.

Rent Calculator FAQs

How much rent can I afford on $50,000/year?

$50,000 ÷ 12 = $4,167/month gross income × 0.30 = $1,250/month maximum rent under the 30% rule.

Is the 30% rent rule still valid?

The 30% rule is a useful starting point, but it was set decades ago when housing costs were lower. In expensive cities, many people spend 35–40% on rent. What matters is that you can cover all essential expenses and still save.

What is the difference between rent and mortgage?

Rent is payment to a landlord with no equity build-up. A mortgage payment builds ownership equity but includes interest, taxes, and insurance costs. Use the Rent vs Buy Calculator to compare the long-term financial impact.

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