Rent Affordability Score Calculator
Is your rent eating too much of your salary? Find out if you're following the 30% rule and get city-specific recommendations.
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72
Affordability Score
Good! You're following the 30% rule!
Your rent is at a healthy level. You have room for other expenses and savings.
📈 Rent-to-Income Ratio
0%
20%
30%
50%
70%+
38.3%
of income goes to housing
Max Affordable Rent (30%)
Rs 18,000
Recommended Rent (25%)
Rs 15,000
Over/Under Budget
+Rs 5,000
City Average
38%
⚖ City Comparison
📊 Budget Breakdown
📈 Savings Impact
💡 Rent Recommendations
How to Use the Rent Affordability Calculator
- Enter Your Monthly Income: Input your in-hand (take-home) salary, not gross salary. This is the amount you actually receive after tax deductions.
- Add Your Current Rent: Enter the rent you're paying or planning to pay. Include any society maintenance fees if not separate.
- Select Your City: Choose your city for accurate benchmarking against local averages.
- Include Utilities: Toggle on to include electricity, water, internet, and other monthly housing costs for a complete picture.
- Check Your Score: The calculator will show your affordability score (0-100) and whether you're following the recommended 30% rule.
- Review Recommendations: Get personalized rent ranges based on your income and city-specific median rents.
Understanding the 30% Rent Rule
What is the 30% Rule?
The 30% rule is a widely accepted financial guideline that suggests you should spend no more than 30% of your gross monthly income on rent and housing costs. This rule helps ensure you have enough money left for other essentials, savings, and discretionary spending.
Why 30%?
This threshold originated from U.S. public housing guidelines in the 1960s and has become a standard benchmark globally. The idea is:
- 30% on Housing: Rent, utilities, maintenance
- 30% on Living Expenses: Food, transport, healthcare
- 20% on Savings: Emergency fund, investments
- 20% on Discretionary: Entertainment, shopping, hobbies
Is 30% Realistic in Indian Cities?
In expensive metros like Mumbai and Bangalore, many professionals spend 35-45% of their income on rent. While not ideal, this is often unavoidable. If you're above 30%, focus on:
- Reducing other discretionary expenses
- Finding roommates to share rent
- Looking at areas slightly farther from prime locations
- Negotiating rent during renewal
- Building skills to increase income over time
Affordability Score Explained
Our calculator provides a score from 0-100:
- 90-100 (Excellent): Under 20% - You're a smart renter with great savings potential
- 70-90 (Good): 20-30% - Following the 30% rule, financially healthy
- 50-70 (Moderate): 30-40% - Slightly stretched, monitor other expenses
- 30-50 (High): 40-50% - Budget is stressed, consider alternatives
- 0-30 (Critical): Above 50% - Unsustainable, urgent action needed
Frequently Asked Questions
What is the 30% rent rule?
The 30% rent rule is a financial guideline that suggests you should spend no more than 30% of your gross monthly income on rent. This leaves enough money for other essentials like food, transport, healthcare, as well as savings and entertainment.
How much rent can I afford on a Rs 50,000 salary?
On a Rs 50,000 monthly salary, following the 30% rule, you can afford up to Rs 15,000 for rent. For comfortable living with good savings, Rs 12,500 (25%) is recommended. This gives you room for utilities, transport, and building an emergency fund.
Is 40% of income on rent too much?
Yes, spending 40% of income on rent is considered high and can strain your budget. It leaves less money for savings, emergencies, and other expenses. In expensive cities like Mumbai, this may be unavoidable, but you should try to compensate by reducing other expenses.
Should I include utilities in rent calculations?
Yes, for accurate affordability assessment, include all housing costs - rent, electricity, water, maintenance, and internet. This gives you the true cost of housing as a percentage of your income and helps with realistic budgeting.
What if I can't find rent within 30% in my city?
In expensive cities, you may need to compromise. Consider: finding roommates to share costs, looking at areas slightly farther from prime locations, using public transport instead of owning a vehicle, or negotiating rent. Also focus on increasing income over time.
Should I use gross or net salary for rent calculations?
For practical budgeting, use your net (take-home) salary - the amount you actually receive after tax deductions and PF contributions. This gives you a more realistic picture of what you can actually afford.