Rent is generally considered affordable if it costs 30% or less of your monthly gross (pre-tax) income.
In our Sustainable Tenancy calculations, we use pre-tax, pre-deductionย income to determine affordability. However, using your after-tax, post-deduction income in the calculator below will give you a clear idea of what you can actually affordย each month when you consider deductions, expenses like debt repayment and utilities, and essentials like groceries, childcare costs, etc.
The calculator below will calculate rent at 30% of your take-home income, and show you how much money you may have left over each month after essentials like groceries, transportation, and childcare costs are accounted for.ย
THIS CALCULATOR IS FOR INFORMATION PURPOSES ONLY
Housing is typically considered affordable if it costs no more than 30% of your pre-tax income. This amount should allow a tenant to afford some savings, other monthly expenses, and to enjoy some spending money.
Rent that costs 40% of pre-tax income should still allow a tenant to pay other expenses and have some spending money, however tenants will need to budget carefully to ensure that rent-to-income level is sustainable.
Tenants who are spending 50% or more of their pre-tax income on rent are considered to be living in unaffordable housing. Tenants who pay 50% or more of their income on rent are strongly encouraged to explore other more affordable housing options, including roommates, applying for rent subsidies, or increasing income.