Rent Affordability Calculator - 30% Rule | FinanceMetricX
Find how much rent you can afford based on your income. See comfortable, recommended, and maximum rent budgets.
Your monthly salary after all deductions
How It Works
The 30% Rule
A widely used guideline suggests that rent should not exceed 30% of your monthly take-home income. This leaves 70% for everything else: food, transport, savings, and discretionary spending.
When to Go Below 30%
If you have aggressive savings goals, high EMI obligations, or dependents to support, aiming for 20-25% of income on rent gives you more breathing room. Consider shared accommodation or locations slightly farther from work.
When 30% Isn't Enough
In expensive cities (Mumbai, Bangalore), 30% may not get you a decent place. Going up to 35% is acceptable short-term if you're early in your career and expect income growth. Beyond 35% creates financial stress for most people.
Other Costs to Factor In
- Maintenance charges and society fees (₹2,000-5,000/month in metros).
- Electricity, water, and internet (₹3,000-5,000/month).
- Security deposit (typically 2-10 months' rent upfront).
- Brokerage fee (usually 1 month's rent, one-time).