Rent-to-income calculator
Enter the monthly rent and an income. See the rent as a share of income, the income as a multiple of the rent, and the income that equals 2.5 times and 3 times the rent. Free, no sign-up.
What the numbers mean
- Rent-to-income ratio. The monthly rent divided by the monthly income, as a percent. A rent of $1,500 on an income of $4,500 a month is 33.3%.
- Income multiple. The monthly income divided by the monthly rent. The same example is 3.0 times the rent. A 3x rule means income must be at least three times the rent, which is the same as a rent of at most one third of income.
- Income needed. The monthly rent times the multiple. At $1,500 a month, a 2.5x rule needs $3,750 a month and a 3x rule needs $4,500 a month.
Which income to enter
Use the same kind of income for everyone: for example, gross income (before taxes), as shown on pay stubs, tax returns or other proof of income. Enter it per month or per year, and the calculator converts a yearly figure to a monthly one by dividing by 12.
Applying a rule the same way
Fair Housing practice is to write down your rental criteria, including any income multiple, and apply the same written criteria to every applicant for the same unit. This page only does arithmetic. It does not tell you what multiple to use or whether to rent to anyone. Your state or city may have its own rules on screening criteria, so check your local law.
Questions
How do you calculate rent-to-income ratio?
Divide the monthly rent by the monthly income and multiply by 100. A rent of $1,800 and an income of $6,000 a month gives 30.0%.
What does the 3x rent rule mean?
It means monthly income of at least three times the monthly rent. At a rent of $2,000, 3x is $6,000 a month, or $72,000 a year.
How do you turn a yearly income into a monthly one?
Divide the yearly income by 12. An income of $60,000 a year is $5,000 a month.
This page shows arithmetic only. It is general information, not legal advice or a recommendation about any applicant.