Rent to Income Ratio Calculator

Calculate Rent to Income Ratio



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:

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:

Using the formula:

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

The Rent to Income Ratio is 30%.