It takes just a few simple calculations to determine how much you can afford to pay in rent.
- Skill level:
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Things you need
- Financial calculator
- Property solicitor
- Personal organisers
- Writing pens
Calculate your total monthly household net income after taxes, including your spouse's income if you're married, and any child-support payments.
Multiply your total monthly net income by 30. This number will give you a general idea of the amount of rent you can afford to pay.
Add up all of your other monthly expenses, such as car and credit card payments. Include estimates for food, entertainment and transportation.
Add together the rent amount from step 2 and the amount from step 3. Make sure this total does not exceed your monthly income. If it does, adjust the amount of rent you can afford.
Tips and warnings
- Housing in some areas costs much more, so set your target accordingly when you plan a move to another city or county.
- Landlords look at the ratio of your debts (including estimated rent payments) to your income in considering your rental application - but your credit history is another important factor.