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What rent can I afford: calculate your maximum

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Many people, especially young people, choose to rent a home instead of buying. Predictable expenses, savings in taxes and maintenance, as well as job instability and mobility are factors that tip the balance. But once the decision is made, the big question comes: what rent can I afford? Calculating it is important to search for a house according to the real possibilities.

How to know what rent I can afford

To answer the question about ‘what rent can I afford’, the experts recommend that it is advisable not to invest more than 30% of the net income in the rent of the house. In this way, the calculation is simple.

If calculated individually, simply subtract debts from the monthly income and apply 30% to the result.

If it is calculated in a way for a family or several people:

Add up the monthly income of all household members.

Add up the costs of credit cards and loans.

Subtract past debt expenses from monthly income to get net income.

Calculate 30% of net income, that is the amount that can be dedicated to rent.

An example. In the case of a couple who earn between € 3,000 and have a debt expense of € 500, the monthly net income would be € 2,500. 30% of that amount is € 750. That would be the maximum rent they could afford .


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