Rent affordability calculator

What the result means

Rent-to-income is a planning ratio. A 30% “housing stress” rule of thumb is a research convention, not a tenancy law or a lender’s serviceability test.

How it is calculated

Percent = annual rent ÷ annual income × 100, with weekly × 52 and monthly × 12

• Annual rent: Not weekly × 4.

Both sides are annualised with the same 52/12 convention as the rent converter.

Worked example

$650 a week on $95,000

A common city rent.

Annual rent

$650 × 52 = $33,800

Share

$33,800 / $95,000 ≈ 35.6%

Above a 30% rule of thumb on gross pay — tighter still after tax.

Gross income overstates what you can spend

This uses pre-tax income. After PAYG, the same rent is a larger share of take-home. Use the salary calculator if you want after-tax income in the denominator.

Weekly rent must be annualised with × 52, not × 4 × 12. A $650 week is $33,800 a year, which is 35.6% of a $95,000 salary before tax and a still larger share of the $74,080 that salary actually keeps.

Questions