How to determine how much you can pay in rent

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How to determine how much you can pay in rent
Determine how much you can afford to pay in rent with a calculator. (Duncan Smith/Photodisc/Getty Images)

It takes just a few simple calculations to determine how much you can afford to pay in rent.

Skill level:
Easy

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Things you need

  • Financial calculator
  • Property solicitor
  • Notebooks
  • Personal organisers
  • Writing pens

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Instructions

  1. 1

    Calculate your total monthly household net income after taxes, including your spouse's income if you're married, and any child-support payments.

  2. 2

    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.

  3. 3

    Add up all of your other monthly expenses, such as car and credit card payments. Include estimates for food, entertainment and transportation.

  4. 4

    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.

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