RentToolkit

Rent-to-Income Ratio Calculator

Check an applicant’s rent-to-income ratio and the income needed for a 3× (or custom) rule.

What do these mean?

Example: $1,500 rent × 12 = $18,000 a year. With a 3× rule, the applicant needs $54,000 a year.

Your results, explained

Rent-to-income ratio
Yearly rent as a share of yearly income. Lower means rent is easier to afford.
Annual income required
Yearly income needed to meet your rule.

Estimates only. Not financial, tax or legal advice.

Results

Rent-to-income ratio—
Annual income required—

Estimates for educational purposes only. Not legal, tax or financial advice. Results depend on your inputs and are provided as is. See our Terms.

How it works

Many landlords look for rent at or below roughly 30% of gross income (the “3× rent” rule). Apply the same standard to every applicant and check local fair-housing and source-of-income rules.

The formula

Ratio = (monthly rent × 12) ÷ gross annual income × 100
Required income = monthly rent × multiple × 12

FAQ

Is the 3× rule a law?

No. It is a common screening guideline; some cities restrict how income requirements can be applied.

Related calculators

Cash flow & ROI

Monthly cash flow, annual cash flow and ROI on a rental after mortgage, vacancy, management and expenses.

Open calculator →

Cap rate

Capitalization rate from property value, gross income and operating expenses.

Open calculator →

Cash-on-cash

Annual pre-tax cash flow divided by the total cash you put into the deal.

Open calculator →