Enter the total monthly rent and the total gross monthly income into the calculator to determine the income rent ratio.

Income Rent Ratio Formula

The following formula is used to calculate an income to rent ratio.


  • Where IRR is the income rent ratio
  • MI is the monthly gross income
  • MR is the monthly rent

Income Rent Ratio Definition

An income to rent ratio is a measure of the total take-home gross income to the total monthly rent paid for a house or apartment. It’s used to analyze the percentage of income is spent on rent.

Income Rent Ratio Example

How to calculate an income rent ratio?

  1. First, determine the total monthly income.

    Calculate the total gross monthly income.

  2. Next, determine the total monthly rent.

    Calculate the total spent on rent monthly.

  3. Finally, calculate the income rent ratio.

    Calculate the income rent ratio using the formula above.


What is the recommended income rent ratio?

For most people or families an income rent ratio of 3 or more is recommended.

income rent ratio calculator
income rent ratio formula