# Rent Calculator – How Much Can I Afford?

Understanding how much you can afford to pay for rent on your salary and how to use a rent calculator is critical for first-time renters starting their apartment or house rental search. It’s best to learn how to calculate the rent by hand but we have made it easier with this rent calculator below.

## Calculating Rent – How Much Rent Can I Afford on My Salary?

Renters can learn more about how to create a budget, a helpful blog post when trying to determine how much rent you can afford. Most industry professionals will tell you a good rule of thumb to use when you are trying to calculate how much rent you can afford on your salary is around 30 percent of your annual income. The quick way to determine the maximum rent to income amount is to be sure your annual income is 40 times the monthly rent or higher.

This can also be a combined annual income if you have roommates. Landlords and property managers typically use this rule of thumb because it leaves enough income to cover other month expenses like rental utilities, renters insurance, car payments, groceries, etc. Here is the formula of how to calculate an affordable monthly rent amount:

Total Annual Income/40 = Maximum Monthly Rent (or how much you or all of your roommates can afford to pay).

## Rent Calculator – How Much Rent Can I Afford to Pay?

If your annual salary is \$80,000, divide that number by 40 and \$2,000 is the maximum monthly rent you should pay.
1. \$80,000/40 = \$2,000

Dividing by 40 is the same thing as taking 30 percent of \$80,000 which is \$24,000. Dividing \$24,000 by 12, you get \$2,000, the same monthly amount of rent you can comfortably afford.
1. \$80,000 x .3 = \$24,000
2. \$24,000/12 = \$2,000

If you don’t want to calculate the rent by hand, we have provided this rent calculator below to make it faster for you.