Rent to Income Ratio Calculator

Formula

To calculate the Rent to Income Ratio:

\[ \text{Rent-to-Income Ratio} = \left( \frac{\text{Monthly Rent}}{\text{Monthly Income}} \right) \times 100 \]

Where:

$\text{Rent-to-Income Ratio}$ is the percentage of income spent on rent
Monthly Rent is the rent amount in dollars
Monthly Income is the income amount in dollars

What is the Rent to Income Ratio?

The Rent to Income Ratio measures the percentage of a person's income that goes towards rent. It is an important metric for both tenants and landlords to ensure affordability and financial stability[^1^][^2^].

Example Calculation

Let's assume the following values:

Monthly Rent = $1,200
Monthly Income = $4,000

Using the formula:

\[ \text{Rent-to-Income Ratio} = \left( \frac{1200}{4000} \right) \times 100 = 30\% \]

The Rent to Income Ratio is 30%.