The simplest rule: rent should be about 30% of your take-home pay. Go much higher and other goals (saving, debt payoff, breathing room) get squeezed.
If you take home $3,000/month, a safe rent is around $900. That leaves $2,100 for everything else.
Most landlords use the 36% rule: your rent plus other debt payments shouldn't exceed 36% of your income. So if you have a $200 car payment, your rent should stay under roughly $880 — not $900.
Open the free rent calculator and enter your take-home pay and other monthly debts. It shows your 30% safe rent and the stricter number once debts are counted.
If rent would push total housing+debt over 36%, or leave you unable to build a small emergency fund, rent below the 30% line. A cheaper place is the fastest way to free up money for the steps in what to do with your money first.
Written by the Infovia team · free tools, no account needed.
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