Rent Affordability Calculator
Work out a sustainable rent from your income, and check it against the income threshold letting agents apply before they will accept an application.
Formula
Maximum rent ≈ 30% of take-home pay
- Letting agents instead use annual gross income ÷ 30 per month
- The two tests disagree, and the lower one is the real limit
£35,000 gross: agents allow £1,166, but 30% of take-home is £718
The 30% Guideline
The common rule of thumb is that rent should not exceed 30% of gross income.
On a £30,000 salary that is £750 a month.
It is a benchmark rather than a law, and in London and the South East many tenants exceed it out of necessity. What matters is what is left afterwards, which is why budgeting from net pay gives a more honest picture.
The 30x Rule Agents Use
UK letting agents typically require annual income of at least 30 times the monthly rent.
A £1,200 a month flat needs an income of £36,000.
For joint tenancies the incomes are usually combined. Fall short and you will normally be asked for a guarantor, who generally needs to earn around 36 times the monthly rent, or to pay several months in advance.
Budget for the Whole Cost
Rent is not the only outgoing. Add council tax unless it is included, energy, water, broadband, contents insurance and any parking or service charge.
Moving in also demands cash up front: a deposit capped at five weeks' rent for most tenancies under £50,000 a year, plus the first month in advance. That is a substantial sum to have ready before you hold any keys.
Quick Reference
| Gross salary | Take-home a month | 30% of take-home | Agent limit (÷30) |
|---|---|---|---|
| £25,000 | £1,793 | £538 | £833 |
| £30,000 | £2,093 | £628 | £1,000 |
| £35,000 | £2,393 | £718 | £1,167 |
| £45,000 | £2,993 | £898 | £1,500 |
| £60,000 | £3,780 | £1,134 | £2,000 |
Frequently Asked Questions
- How much rent can I afford?
- A common guideline is 30 per cent of gross income, so £750 a month on a £30,000 salary. Check what is left after bills rather than treating it as a hard rule.
- What income do letting agents require?
- Usually at least 30 times the monthly rent as annual income, so £36,000 for a £1,200 flat. Joint applicants normally combine incomes.
- What if I do not meet the income threshold?
- Agents typically ask for a guarantor earning around 36 times the monthly rent, or several months of rent paid in advance.
- How much is a tenancy deposit?
- Capped at five weeks' rent for most assured shorthold tenancies where annual rent is under £50,000, plus the first month payable in advance.