Rent-to-Income Ratio Calculator

Gross monthly income = sum of each applicant's gross income (÷ 12 if annual)
Rent-to-income ratio = monthly rent ÷ gross monthly income × 100
Income needed = monthly rent × required multiple
Max rent = gross monthly income ÷ required multiple

• Gross income is pay before taxes, retirement contributions and other deductions. It is what most pay stubs, offer letters and tax returns make easy to verify.
• Required multiple is your screening standard. A 3x rule means income of at least three times the rent, which is the same as a rent-to-income ratio of 33.3% or less. A 2.5x rule allows up to 40%.
• Monthly rent is the base rent in the lease. If tenants also pay required monthly fees, such as parking or pet rent, decide whether your standard includes them and apply that the same way to everyone.

The calculator starts with a $1,800 apartment and one applicant earning $52,000 a year, screened at 3x the rent.

1. Gross monthly income: $52,000 ÷ 12 = $4,333.
2. Rent-to-income ratio: $1,800 ÷ $4,333 × 100 = 41.5%.
3. Income needed at 3x: $1,800 × 3 = $5,400 a month, or $64,800 a year.
4. Result: the applicant is $1,067 a month short, so they do not meet the standard. The most rent this income supports at 3x is $1,444.

With a co-applicant: two roommates earning $40,000 and $26,000 a year have combined monthly income of $5,500. The ratio drops to 32.7%, a multiple of 3.06x, which clears the 3x standard.

Many landlords look for a ratio of about 30% to 33% or less, which is the familiar "3x the rent" rule. Some accept up to 40% (2.5x), especially in high-cost areas or for applicants with strong savings and rental history. A lower ratio leaves the tenant more room for other costs, which is why it is a useful signal, but it is only one part of screening.

Whatever standard you pick, write it down before you advertise the unit and apply it to every applicant. Fair housing law bars treating applicants differently because of protected characteristics, and some states and cities add rules about how income and sources of income such as housing vouchers can be considered. The tenant screening guide covers the full process, and the free rental application form collects the income details you need.

• Mixing gross and net income between applicants, which makes the same household pass for one landlord and fail for another.
• Entering annual income but reading the result as if it were monthly, or the reverse.
• Counting income from someone who will not sign the lease and is not responsible for the rent.
• Using the ratio alone and ignoring rental history, existing debts and how the income is verified.
• Changing the standard from one applicant to the next instead of following written screening criteria.

An applicant who misses your income standard is not automatically a bad tenant. Common options, applied under a written policy, include a qualified cosigner or guarantor, proof of savings or other assets, or a lower-rent unit. If you accept a cosigner, run the same ratio on the cosigner's income and put the arrangement in a cosigner agreement.

Before move-in, confirm the deposit is within your state's limit with the security deposit calculator, and set a late fee the lease can enforce with the late fee calculator.

Should I use gross or net income?

Most landlords use gross income, before taxes and deductions, because that is what pay stubs, offer letters and tax returns show most clearly. Whichever you use, state it in your written screening criteria and use the same measure for every applicant.

How do I count income for roommates or co-applicants?

Many landlords add together the income of everyone who will sign the lease and compare the total with the rent. Others require each roommate to meet a share of the rent on their own. Enter each applicant's income separately in the calculator to see the combined figure, and apply the same policy to every household.

Is 3x the rent a legal requirement?

No. The 3x rule is a common screening standard, not a law. Some landlords use 2.5x or 40 times the monthly rent per year. Some states and cities limit how income can be used in screening, for example when an applicant has a housing voucher, so check the rules where the property is before you set a minimum.

What if an applicant's income is below the target?

You can decline under a written policy applied consistently, or consider alternatives such as a qualified cosigner, proof of savings, or a smaller unit. If you accept a cosigner, put it in writing with a cosigner agreement. Whatever you decide, treat every applicant in the same situation the same way.

• Late Fee Calculator

  Flat or percent late fee plus daily fees, checked against your state's statutory cap.

• Security Deposit Calculator

  The most you can collect under your state's deposit limit, with exceptions and the return deadline.

• Rent Increase Calculator

  Percent change between two rents, or the new rent from a percent, with your state's notice rule.

• Prorated Rent Calculator

  Rent owed for a partial month, by days-in-month, 365-day or 30-day method.

See all landlord and investor calculators

• How to Screen Tenants: A Step-by-Step Guide for Landlords
• Tenant Screening Checklist for Landlords