Rent Affordability Calculator
Rent Affordability Calculator
By SoFi Editors | Updated October 22, 2025
If you’re wondering how much rent you can afford, this rent affordability calculator can help you do the math. By taking into account your earnings, debt payments, and overall budget, it allows you to see how many dollars to allocate to housing per month.
Key Points
• A rent affordability calculator can help determine an appropriate amount of rent to pay.
• The affordability calculator takes into account your income, your debts, and the percentage of your earnings you want to spend on rent.
• The calculator does the math for you and allows you to compare various rent and budget scenarios.
• Experts advise spending no more than 30% of your income on rent, but those who live in higher-priced areas may spend more.
• Ways to make rent more affordable can include looking for move-in discounts, building your credit score, and taking in a roommate.
Calculator Definitions
Here are the terms to familiarize yourself with when using the rent affordability calculator.
• Monthly Income: Here, you’ll enter your monthly gross, or pretax, income, either by typing in the amount or using the slider.
• Monthly Debt Payments: In this space, you’ll add the monthly total of how much you put toward debt payments. Include your minimum credit card, auto loan, student loan, and personal loan payments.
• Rent Allocation: Next, you’ll choose among 25%, 30%, and 35% as the portion of your pay that you’ll put toward rent. While experts typically recommend spending 30% on rent, your amount may vary.
• Maximum Affordable Rent: Finally, the calculator will show you how much you can comfortably afford to spend on rent based on the information you have input.
What Is a Rent Affordability Calculator?
A rent affordability calculator is a useful tool that can help you determine how much you can spend on rent, based on such variables as your earnings and your debt level. It can save you the trouble of breaking out pencil and paper or using your mobile phone’s calculator app. What’s more, it can be a convenient way to compare scenarios as you consider different rental options.
How to Use the Rent Affordability Calculator
Here are the moves to make to use the affordability calculator for rent.
Step 1: Enter your earnings
Your first step is to enter in your monthly gross, or pretax, earnings. This tells the calculator the income you are working with.
Step 2: Add your debt
Next, tally up the amount you pay monthly toward debt. You can use the minimum payments you typically make toward your credit card spending and student, home, personal, and other loans.
Step 3: Select your allocation level
When using the rent affordability calculator, you’ll enter in the percentage of your income you are comfortable putting toward rent. Experts advise no more than 30%. With this tool, you will select among 25%, 30%, and 35%. The highest figure may be the best choice for those living in high-priced areas.
Step 4: Find your maximum monthly rent
Once you have completed the above steps, the rent affordability calculator will show you the maximum amount to spend on rent to stick to your budget.
Benefits of Using a Rent Affordability Calculator
Using a rent affordability calculator has a number of advantages.
• Quick calculations: It does the math for you, saving you time and energy.
• Smarter decision-making: It can help you see how much you can afford if you allocate a higher or lower percentage of your earnings toward rent. Then you can make an informed decision about how much to spend.
• Informed comparison shopping: When comparing available properties, you can see where they fall versus your target rent payment.
• Better budgeting: It can help you budget effectively and know your limits in terms of how much to spend on rent every month.
How to Use Rent Affordability Calculator Data to Your Advantage
When working with the rent affordability calculator, you can use the output to your advantage in a number of ways. You can see whether your current rent could be positively or negatively impacting your budget. If your rent is too high, it may be limiting your ability to put cash into a savings account or even keep up with your monthly bills.
The calculator can also help you evaluate whether moving to a pricier home makes sense. Say you just switched jobs and will now be earning more. The affordability calculator for rent can reveal how much more you can comfortably spend while still managing your money well.
Or you might use it to see how much rent you could afford if you lowered the percentage of your paycheck spent on housing. Perhaps you want to start putting more money into savings for an emergency fund or for a wedding. The calculator can show you what, say, rent that’s 25% of your earnings looks like versus spending 35%.
Types of Rental Properties
As you think about renting a home and how much to spend, it can also be a good idea to familiarize yourself with the different types of rental properties. Just as with properties you might buy with a home loan, they come in different configurations:
• Single-family home
• An apartment. This could be an apartment in a large building or complex, or what’s often called a multi-family unit, such as a duplex which is one unit in a two-unit structure.
• Sublet, in which you pay to rent a property which is leased in someone else’s name. You become their subtenant.
• Shared home, in which you and others are essentially roommates, having both private and shared spaces in a property.
Examples of Rental Scenarios
When using the rent affordability calculator, you may consider different scenarios that can help you make informed financial decisions.
• Scenario 1: Say you earn $10K a month, have $1K in monthly debt payments, and want to put 25% of your income toward rent as you work to pay off your student loans and start saving to buy your first home. Using the calculator, you’d learn that you can afford $1,500 per month for your rent.
• Scenario 2: In this scenario, you might earn $10K a month, have only $300 a month in debt payments, and want to put 35% toward rent because you live in a city with a high cost of living. In this case, you can use the rent affordability calculator to see that you can go shopping for a rental of up to $3,200 a month.
Recommended: Cost of Living in the U.S.
Rent Affordability Tips
Many people are interested in keeping costs down, and the realm of rent is no exception. Try these tips to make your rent as affordable as possible.
• Try to stick to spending no more than 30% of your income on rent, if possible. Financial experts suggest this percentage is wise for overall budget health. If, however, you live in a high-priced area, this may be challenging to achieve.
• Look for move-in specials. Some landlords may offer discounts during slow periods of the year or when a new building opens and they are eager to fill it up. You might snag, say, a month or two of free rent.
• Build your credit score. Many landlords review credit scores of applicants. Having a higher score could mean you are chosen over other potential renters when a well-priced property comes on the market.
• Consider taking in a roommate or moving to a less pricey neighborhood to cut costs. You might check out lists of the best affordable places in the U.S. if you are considering a move.
Recommended: Down Payment Assistance Programs
The Takeaway
Using an affordability calculator for rent can help you see how much you can spend on rent based on your income, debts, and budget parameters. It can help you compare options and manage your money better. In this way, you can take as much care when determining your rent as you would when calculating how big a mortgage you can afford when buying a home.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
What information do I need to use a rent affordability calculator?
To use a rent affordability calculator, you should have the following information available: your monthly gross income, your monthly debt payments, and what percentage of your income you are aiming to spend on rent. The calculator will do the rest.
Does the calculator use my gross income or my net (take-home) income?
The affordability calculator for rent uses gross (or pretax) income versus net, or take-home, pay.
What is the “30% rule” for rent affordability and how does the calculator use it?
Financial experts typically advise spending no more than 30% of income on rent. The calculator can be set with this percentage, or you can select 25% (if, say, you want more funds available to save or pay down debt) or 35% (which may suit those who live in areas with a higher-than-average cost of living).
Can a rent affordability calculator help me budget for other monthly expenses besides rent?
While a rent affordability calculator is focused on what amount to spend on rent, it can have a ripple effect. If you get your rent into a good position versus your income and debt level, the rest of your budget may fall into place more easily.
How does a rent affordability calculator account for my debts, such as student loans or car payments?
The affordability calculator for rent asks you to add up your monthly debt and enter it into the tool. This would include the amount of your minimum monthly credit card payments as well as student, auto, and personal loans.
Does the calculator include the cost of utilities or renter’s insurance in its estimate?
The rent affordability calculator does not include utilities or renter’s insurance in its estimate of how much rent you can afford each month. Rather, those are items to be accounted for in your monthly budget.
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Do You Know Your Tax Bracket? (Hint: It’s a Trick Question)
If you pay taxes, do you know what tax bracket you’re in?
It’s kind of a trick question, actually, since most of us don’t pay taxes according to one tax bracket. (Popular misconception.)
But it’s a good time to ask yourself about it, since the IRS just announced the new inflation-adjusted tax brackets for 2026), putting a finer point on the tax rates that were extended by the One Big Beautiful Bill Act (OBBBA) in July.
In short, the OBBBA renewed the same seven federal income tax rates we’ve had since 2018, and now we know exactly how much taxable income will fall within each rate, aka each tax bracket. (The IRS raises the income limits to reflect annual cost-of-living increases so no one is pushed into a higher tax bracket by inflation.)
Now before you review the table below, there’s an important caveat related to that trick question: When you look up which bracket your taxable income falls into, the corresponding tax rate isn’t the tax rate you pay on all your income. These are the marginal tax rates for each income range, meaning that tax rate only applies to the portion of your income that’s not taxed at lower rates. The withholding from your paycheck reflects this, estimating your average (aka effective or blended) tax rate. How exactly does it all work? Here’s a quick example.
| Tax Rate | Tax Year 2025 Bracket | Tax Year 2026 Bracket |
|---|---|---|
| 10% | $11,925 or less ($23,850 for married couples filing jointly) | $12,400 or less ($24,800 for married couples filing jointly) |
| 12% | Over $11,925 ($23,850) | Over $12,400 ($24,800) |
| 22% | Over $48,475 ($96,950) | Over $50,400 ($100,800) |
| 24% | Over $103,350 ($206,700) | Over $105,700 ($211,400) |
| 32% | Over $197,300 ($394,600) | Over $201,775 ($403,550) |
| 35% | Over $250,525 ($501,050) | Over $256,225 ($512,450) |
| 37% | Over $626,350 ($751,600) | Over $640,600 ($768,700) |
Marginal tax rate vs. effective tax rate
The U.S. has what’s known as a progressive tax system, meaning your income isn’t taxed at one rate. Instead, you pay tax in layers known as brackets. As your income goes up and crosses the various thresholds, the tax rate on each layer of income rises.
Let’s say you’re married and you and your spouse are filing together with $100,000 in taxable income in 2026. (This means the two of you make more than $100,000 a year together, of course, since we’re only talking taxable income — after your tax deductions, any 401(k) contributions, etc.)
The $100,000 puts you in the 22% bracket, because, as the table above shows, you make over $96,950 but less than $206,700. That means you only owe 22% on income over $96,950. In other words:
• The first $23,850 is taxed at 10% = $2,385
• The next $73,100 ($96,950 – $23,850) is taxed at 12% = $8,772
• And then the remaining $3,050 ($100,000 – $96,950) is taxed at 22% = $671
In total, you and your spouse owe $11,828. ($2,385+$8,772+$671)
This is where your average tax rate comes in. That’s the percentage of all your income you pay in taxes. So in this example, since you two owe $11,828 of the $100,000, your effective tax rate would be 11.8%.
So what?
No one wants to pay more tax than they have to. And many Americans don’t fully understand how tax brackets and rates work. But the more you know, the better equipped you are to maximize your take-home pay and capitalize on tax-advantaged savings accounts, deductions, and tax credits.
Besides extending the current federal tax rates beyond 2025, the OBBBA included a number of new tax breaks and rule changes, several of which take effect this year. (These include tax deductions for tips and auto loan interest, and a higher SALT cap, among others.)
So even before 2026, understanding how your tax burden could change can help you decide what to do if you end up with more cash in your pocket. (Important note: The IRS’s tax withholding estimator has yet to reflect the OBBBA changes that take effect this year.) Talk it over with a financial advisor — at SoFi, there’s no charge for an initial financial planning session — or consider these ideas:
• Bump up your automatic deposits into your emergency savings account
• Pay down high-interest credit card debt
• Increase your contributions to your investment accounts (or open one)
• Start a new savings account earmarked for something fun
Related Reading
• 2026 Tax Calculator: How the One Big Beautiful Bill Act’s Tax Changes Will Affect You (Tax Foundation)
• Don’t Underestimate the Power of Your W-4 (SoFi)
• Top 8 Year-End Tax Tips (TurboTax)
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
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