Rent Affordability Calculator
Estimate the maximum rent you can afford based on your income, debts, and standard financial ratios.
Income Information
Debt Information
Include credit cards, car loans, student loans, and other monthly debt payments
Financial Ratios
Percentage of income for housing (typically 28-30%)
Percentage of income for all debts (typically 36-40%)
Enter your income and debt information to see your results
Sample Scenario:
Inputs:
- • Annual income: $60,000
- • Monthly debts: $500
- • Front-end ratio: 30%
- • Back-end ratio: 40%
Calculation:
- • Monthly income: $60,000 ÷ 12 = $5,000
- • Front-end limit: $5,000 × 30% = $1,500
- • Back-end limit: $5,000 × 40% - $500 = $1,500
- • Maximum rent: $1,500
1. Monthly Income Conversion
If annual income: Monthly Income = Annual Income ÷ 12
If monthly income: Monthly Income = Monthly Income (as entered)
2. Front-end Ratio Limit
Rent (Front-end) = Front-end Ratio × Monthly Income
3. Back-end Ratio Limit
Rent (Back-end) = (Back-end Ratio × Monthly Income) - Monthly Debts
4. Maximum Affordable Rent
Maximum Rent = min(Front-end Limit, Back-end Limit)
If the result is negative, the affordable rent is set to $0
What is the front-end ratio?
The front-end ratio is the percentage of your gross monthly income that goes toward housing costs. Lenders typically prefer this to be no more than 28-30%.
What is the back-end ratio?
The back-end ratio is the percentage of your gross monthly income that goes toward all debt payments, including housing. Lenders typically prefer this to be no more than 36-40%.
Should I include utilities in my rent budget?
This calculator shows the maximum rent payment only. You should budget separately for utilities, renter's insurance, parking, and other housing-related expenses.
What debts should I include in monthly debt payments?
Include all recurring monthly debt payments such as credit cards, car loans, student loans, personal loans, and other installment debts. Do not include utilities or insurance.