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 (%)