How much rent can I afford?
A widely used rule of thumb is that rent should not take more than 30% of your income. This calculator applies that rule to your net (take-home) income rather than gross income, because take-home pay is what you actually have available to spend.
For example, £850 a month in rent (£10,200 a year) on a net income of £28,000 works out at 36.4%, above the 30% guideline. The same rent on a £34,000 net income works out at exactly 30%. Enter your own pay and rent above to see where you land.
How much rent can you afford?
A widely-used rule of thumb is that rent shouldn't take up more than 30% of your income. This calculator applies that rule to your net (take-home) income rather than gross income, since take-home pay is what you actually have available to spend day to day, which makes the 30% figure a more realistic guide to what you can genuinely afford.
For example, £850 a month in rent (£10,200 a year) on a net income of £28,000 works out at 36.4% - above the 30% guideline, meaning less room for other costs. The same rent on a £34,000 net income works out at 30% exactly.
How letting agents check affordability
Many letting agents and referencing providers use a different check: a minimum gross annual income of around 30 times the monthly rent, which works out at roughly 33% of gross income. Exact requirements vary between agents, so if you're applying for a specific property, check what income multiple or ratio they use, and be prepared to provide payslips, bank statements or a guarantor if you're close to the threshold.
Budgeting beyond rent
Rent is usually the largest single outgoing, but it's rarely the only one. Council Tax, gas and electricity, water, broadband, contents insurance, and travel costs all come out of what's left after rent, so a ratio comfortably under 30% leaves more room to cover those and still save. If your rent is above 30% of your net income, it's worth mapping out your full monthly budget rather than relying on the ratio alone.
Example rent affordability calculations
These household scenarios compare income-based rent limits with the monthly rent entered, helping you judge whether the cost fits the selected affordability rule.
Comfortable, well within 30%
£650/mo rent · £32,000 net income
- Rent ratio
- 24.4%
- Within 30%?
- Yes
Right at the 30% threshold
£700/mo rent · £28,000 net income
- Rent ratio
- 30.0%
- Within 30%?
- Yes
Stretched, above 30%
£850/mo rent · £24,000 net income
- Rent ratio
- 42.5%
- Within 30%?
- No
High earner, low rent city
£900/mo rent · £45,000 net income
- Rent ratio
- 24.0%
- Within 30%?
- Yes
Frequently asked questions
01How much of my income should go on rent?
A widely-cited rule of thumb is that rent shouldn't exceed 30% of your income. This calculator applies that rule to your net (take-home) income rather than gross income, since take-home pay is what you actually have available to spend, making the 30% figure a more realistic guide to what you can genuinely afford alongside your other costs.
02Is the 30% rule based on gross or net income?
The rule is most commonly quoted against gross (pre-tax) income, but that can be misleading, since two people on the same gross salary can have very different take-home pay depending on student loans, pension contributions and tax code. This calculator uses net income instead, so the 30% threshold reflects money you actually receive.
03What if my rent is more than 30% of my income?
It doesn't automatically mean you can't afford the property, especially if you have low other outgoings, but it does mean less room for Council Tax, utilities, food, transport, debt repayments and savings. Landlords and letting agents often use affordability checks around this level (or a multiple of annual rent, such as an income of 30x the monthly rent) when assessing referencing applications, so a ratio above 30-35% can also make it harder to pass a reference check even if you can genuinely manage the payments.
04Do letting agents use a different affordability check?
Many use an income multiple instead of a straight percentage: a common guideline is gross annual income of at least 30 times the monthly rent (roughly equivalent to rent being about 33% of gross income). Exact policies vary by agent and referencing provider, so always check the specific requirement for a property you're applying for.
05Does this calculator include household bills?
No. It only compares rent to your net income. Council Tax, utility bills, contents insurance and other living costs are separate and should be budgeted for on top of the amount left over after rent, particularly if bills aren't included in your tenancy agreement.
06Should I use my income alone or joint income with a partner?
Use whichever reflects who's actually paying the rent. If you're renting jointly and splitting costs, you can either enter your combined net income against the full rent, or your own net income against your own share of the rent - both give a comparable ratio, as long as you're consistent between the income and rent figures you enter.
Affordability assumptions
This rent affordability calculator assumes:
- Your rent ratio is annual rent (monthly rent x 12) divided by your annual net income, expressed as a percentage.
- The 30% threshold is a commonly-cited guideline, not a legal limit or a guarantee you'll pass a specific landlord or letting agent's affordability check, which may use a different method (such as an income multiple based on gross pay).
- This doesn't account for your other outgoings, savings goals, or dependants, all of which affect what you can genuinely afford beyond the ratio shown.
- All figures are rounded to the nearest penny or 0.01%.
If you only know your gross salary, use the Take-Home Pay Calculator first to work out your net income.
Sources
Further guidance referenced on this page: