Rent-to-Income Ratio Calculator
Divide housing cost by gross monthly income. On 3,000,000 of income, 1,000,000 of rent is 33.3%, while the 30% line sits at 900,000 — you are 100,000 over. The 30% figure is a convention from US housing policy for what counts as affordable; it is not a rule, and the reality varies enormously by city. In expensive metros 40–50% is ordinary.
Your numbers
Percentage
33.3%
Cap at that guideline
900,000
Difference
100,000
Remaining
2,000,000
What it means
Housing takes 33.3% of income — 3.3 points above the 30% guideline.
Formula
Percentage = Housing a month ÷ Gross amount × 100
Whether you fold in utilities, heating and building fees swings the ratio by five to ten points. Gross income gives a lower ratio than take-home pay does, so compare two places on the same basis.
What to enter
| Input | Default | Accepted range |
|---|---|---|
| Housing a monthWhat housing costs you in a month; decide up front whether utilities are in it. | 1,000,000 | 0 and up |
| Gross amountThe contracted amount before any deduction. | 3,000,000 | 0 and up |
| Guideline (%)The line you measure against; the oft-quoted 30% is a convention, not a rule. | 30 | 1 ~ 100 |
Step by step
Quick reference table
Results when only Housing a month changes and everything else stays put.
| Housing a month | Percentage (%) | Cap at that guideline | Difference |
|---|---|---|---|
| 500,000 | 16.7 | 900,000 | -400,000 |
| 750,000 | 25 | 900,000 | -150,000 |
| 1,000,000 | 33.3 | 900,000 | 100,000 |
| 1,500,000 | 50 | 900,000 | 600,000 |
| 2,000,000 | 66.7 | 900,000 | 1,100,000 |
What each result means
| Result | At default values |
|---|---|
| Percentage (%)A share expressed out of 100. | 33.3 |
| Cap at that guidelineThe most you could spend on housing and still sit on that line. | 900,000 |
| DifferenceThe gap between two values — a quantity, not a rate. | 100,000 |
| RemainingHow much is still left to go; zero means the goal is met. | 2,000,000 |
Common mistakes
Whether you fold in utilities, heating and building fees swings the ratio by five to ten points. Gross income gives a lower ratio than take-home pay does, so compare two places on the same basis.
Glossary
- Housing a month
- What housing costs you in a month; decide up front whether utilities are in it.
- Gross amount
- The contracted amount before any deduction.
- Guideline
- The line you measure against; the oft-quoted 30% is a convention, not a rule.
- Percentage
- A share expressed out of 100.
- Cap at that guideline
- The most you could spend on housing and still sit on that line.
- Difference
- The gap between two values — a quantity, not a rate.
- Remaining
- How much is still left to go; zero means the goal is met.
Frequently asked questions
Q. How is Rent-to-Income Ratio Calculator calculated?
Percentage = Housing a month ÷ Gross amount × 100 — Divide housing cost by gross monthly income. On 3,000,000 of income, 1,000,000 of rent is 33.3%, while the 30% line sits at 900,000 — you are 100,000 over. The 30% figure is a convention from US housing policy for what counts as affordable; it is not a rule, and the reality varies enormously by city. In expensive metros 40–50% is ordinary.
Q. Can you walk through an example?
With Housing a month 1,000,000, Gross amount 3,000,000, Guideline 30%, the answer is Percentage 33.3%.
Q. What do I need to enter?
Enter Housing a month, Gross amount, Guideline. The result recalculates as you type, and an empty box counts as zero.
Q. How much does the answer move if I change a number?
Changing only Housing a month moves the answer to Housing a month 500,000 → Percentage (%) 16.7 and Housing a month 2,000,000 → Percentage (%) 66.7. The table below lays out five steps.
Q. How are the numbers rounded?
Money is shown to the nearest whole unit, percentages to one decimal place and everything else to two. What you see is rounded; the calculation itself carries the unrounded value forward.
Q. Anything to watch out for?
Whether you fold in utilities, heating and building fees swings the ratio by five to ten points. Gross income gives a lower ratio than take-home pay does, so compare two places on the same basis.
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Tax rates and interest conventions differ by country and product — check your contract for real transactions.