Enter the monthly gross income (\$) and the monthly rent (\$) into the calculator to determine the Percentage of Income For Rent.

## Percentage of Income For Rent Formula

The following formula is used to calculate the Percentage of Income For Rent.

R% = R / MGI * 100

• Where R% is the Percentage of Income For Rent (%)
• MGI is the monthly gross income (\$)
• R is the monthly rent (\$)

In general, a person’s rent should be less than 40% of their monthly gross income.

## How to Calculate Percentage of Income For Rent?

The following example problems outline how to calculate Percentage of Income For Rent.

Example Problem #1:

1. First, determine the monthly gross income (\$). In this example, the monthly gross income (\$) is given as 5000.
2. Next, determine the monthly rent (\$). For this problem, the monthly rent (\$) is given as 3000.
3. Finally, calculate the Percentage of Income For Rent using the equation above:

R% = R / MGI * 100

The values given above are inserted into the equation below:

R% = 3000 / 5000 * 100 = 60 (%)

Example Problem #2:

The variables needed for this problem are provided below:

monthly gross income (\$) = 10000

monthly rent (\$) = 2000

Entering these values and solving gives:

R% = 2000 / 10000 * 100 = 20 (%)