Rent to income ratio calculator
See what share of an applicant's gross income the rent would take, and the income needed to meet your screening target. Enter the rent, the income and your target ratio.
Your results
EstimateRent-to-income ratio: 32.73%
- Income as a multiple of rent
- 3.06x
- Gross monthly income
- $5,500.00
- Monthly income needed at your target
- $6,000.00
- Annual income needed at your target
- $72,000.00
- Highest rent at your target
- $1,650.00
- This applicant's ratio is above your target.
Results are estimates for planning only. They are not legal, tax or investment advice, and they apply no state or local rules. Check your lease, your local laws and a qualified professional before you rely on a number.
How the rent-to-income ratio is calculated
Rent-to-income ratio = monthly rent / gross monthly income
Gross income is income before taxes for everyone on the lease. If you enter yearly income, the calculator divides it by 12.
The income needed at your target is the rent divided by the target ratio. A 30% target is the same as asking for income of about 3.3 times the rent; a 3 times rule is a target of about 33%.
Apply the same standard to every applicant, and check local rules: some places limit how income can be counted or require you to consider rental assistance.
Worked example
The rent is $1,800 a month and the applicant earns $66,000 a year. Your target is 30%.
- Gross monthly income: $66,000 / 12 = $5,500.
- Rent-to-income ratio: $1,800 / $5,500 = 0.3273.
- Income needed at 30%: $1,800 / 0.30 = $6,000 a month, or $72,000 a year.
The estimated rent-to-income ratio is 32.73%, above a 30% target.
Frequently asked questions
What is a good rent-to-income ratio?
Many rental property owners look for rent at or under 30% of gross monthly income, which matches a rule of income at about 3.3 times the rent. Others use 3 times the rent, about 33%. Choose a standard and apply it to every applicant.
Should I use gross or net income?
Most screening standards use gross income, before taxes. This calculator expects gross income.
How do I count income for roommates?
Add the gross income of everyone who will sign the lease, if your screening policy combines income. Use the same policy for every application.
Is a rent-to-income ratio a legal requirement?
It is a screening guideline that rental property owners choose. Some states and cities regulate income requirements, for example around rental assistance, so check the rules where the property is.
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