What Is Rent-to-Income Ratio?
The percentage of monthly income spent on rent.
Definition
The rent-to-income ratio measures how much of your monthly take-home pay goes to rent. Many budgeting guidelines suggest keeping rent below 30–35% of net income. A higher ratio leaves less for food, transport, savings and unexpected costs.
Related calculators
Use these tools to work with rent-to-income ratio in your planning.
Rent Affordability Calculator
Compare monthly rent against income and savings goals to check affordability.
Open Rent Affordability CalculatorRent to Salary Ratio Calculator
Calculate your rent-to-salary ratio to check whether your housing costs are healthy, manageable, tight or risky.
Open Rent to Salary Ratio CalculatorIs This Rent Too High Calculator
Check whether a rent amount is healthy, manageable, tight or risky based on your monthly net income.
Open Is This Rent Too High CalculatorOther glossary terms
Gross Salary
Your salary before taxes and deductions are removed.
Read definitionNet Salary
Your salary after all taxes and deductions are removed — the amount you actually receive.
Read definitionIncome Tax
A tax paid on earned income, deducted from your salary or paid on profit.
Read definitionSocial Security
Compulsory contributions paid by employees and employers to fund public welfare programmes.
Read definition