Definition
Rent to income ratio
The rent to income ratio is your monthly rent divided by your monthly take-home pay. The widely used comfort ceiling is 30%, and many landlords use a gross-income test of around 40%.
The ratio is a starting screen rather than a verdict, because it says nothing about transport costs, utilities or the size of your remaining obligations.
Tools that use this term
Rent Affordability Calculator
What rent your income supports, and whether the place you are looking at fits.
Budget Calculator
Split your take-home pay into needs, wants and savings with the 50/30/20 guideline.
Cost of Living Calculator
Compare two places line by line and see what the difference means for your salary.
House Affordability Calculator
How much house your income supports, once existing debts and running costs are counted.