Rent Proportion Calculator

Formula

The formula to calculate the rent proportion (RP) is:

\[ RP = \frac{R}{GI} \]

Where:

Rent Proportion: The ratio of the monthly rent to the gross income. It helps in understanding how much of the income is spent on rent.

Let's say the rent (R) is $1,200 and the gross income (GI) is $4,000. Using the formula:

\[ RP = \frac{1200}{4000} \]

We get:

\[ RP = 0.30 \]

So, the rent proportion is 0.30 or 30%.