Rent Affordability Calculator
Find the maximum rent your income can support without squeezing everything else.
The usual advice is to keep rent under 30% of income. That is a starting point, not an answer — it ignores your EMIs, your family's costs and the savings you are trying to protect. This calculator applies both tests and reports whichever binds, plus the cash you need to actually move in.
Income and commitments
Result
Fill in the fields above and your result will appear here.
What the Rent Affordability Calculator does
Two constraints decide affordable rent. The first is the income ratio, a rule of thumb that keeps housing from crowding out everything else. The second is arithmetic: what is genuinely left after your existing commitments.
For someone with a car loan and school fees, the second constraint usually binds well below 30%. For someone with no EMIs, the ratio is the sensible limit. The tool reports the lower of the two, which is the honest answer.
How to use this tool
- Enter your monthly take-home — the amount credited to your account, not CTC.
- Add any other income that reliably contributes to household expenses.
- Enter existing EMIs and your essential monthly spending excluding rent. Bank statements are more accurate than memory here.
- Set the savings you want to protect. Treating savings as a fixed commitment rather than a residual is what makes the number honest.
- Adjust the deposit and brokerage months to match local practice, and read the move-in cost.
Formula and method
Ratio cap = Monthly income × Maximum rent share
Available = Income − EMIs − Essentials − Savings target
Affordable rent = the LOWER of Ratio cap and Available
Move-in cash = Deposit + Brokerage + First month's rent
where Deposit = Rent × Deposit months
Worked example
Example: ₹75,000 take-home with an ₹8,000 EMI
| 30% of income | ₹22,500 |
| After EMIs, essentials and savings | ₹27,000 |
| Affordable rent (lower of the two) | ₹22,500 |
| Deposit at 3 months | ₹67,500 |
| Cash needed to move in | ₹1,12,500 |
The ratio binds here. Note the move-in cost: five times the monthly rent, which is the part that catches people out when relocating.
What your result means
Under 25% of income is comfortable and leaves genuine room to save.
25–35% is normal in Indian metros and workable, provided EMIs are modest.
Above 40% is where households become fragile. A job change, a medical expense or a rent increase all become crises rather than inconveniences.
The move-in cost deserves as much planning as the rent itself. In parts of Bengaluru a ten-month deposit is still common, which can mean a year's savings locked in a landlord's account.
Important considerations
- HRA exemption under the old tax regime reduces the effective cost of rent for salaried employees. It does not apply under the new regime.
- Rent agreements in India typically include an annual escalation of 5–10%. Budget for the second year, not just the first.
- Maintenance charges, parking and society fees are often billed separately from rent. Ask before signing.
- A large deposit has an opportunity cost — money sitting with a landlord earns nothing. Negotiating it down is worth as much as negotiating the rent.
- If rent is paid to a landlord above the prescribed annual threshold, the tenant is required to deduct tax at source. Check the current rule before setting up payments.
- Locality matters more than city. Rent within one city can vary by three times between neighbourhoods.
Limitations of this tool
- City rent figures are editable starting values shown for reference only, not survey data.
- It does not model HRA exemption, which would reduce the effective cost of rent under the old tax regime.
- One-off costs of setting up a home — furniture, appliances, deposits for utilities — are not included in the move-in figure.
Frequently asked questions
How much of my salary should go on rent?
Thirty percent of take-home is the usual guideline, and 25% is comfortable. In expensive metros many people go to 35–40%, which works only if EMIs are low and savings are still happening.
Is the 30% rule calculated on gross or take-home?
Take-home. Using CTC or gross salary overstates what you can afford by 25–35%, because tax and PF never reach your account.
Why is the security deposit so high in Bengaluru?
It is long-standing local practice rather than any legal requirement — deposits of six to ten months have been common there, against two to three months in most other Indian cities. It is negotiable, particularly for longer lease commitments.
Should I include my partner's income?
Yes, if it reliably contributes to household expenses and the tenancy will be joint. Be conservative if it is variable or if the arrangement might change.