RentForms

Rent-to-income calculator

See the income a rent requires at the multiplier you choose, or check an applicant’s rent-to-income ratio. Every formula and rounding rule is shown.

Free. No signup required.

Your numbers

What do you want to calculate?

An example you choose, not a universal or legal requirement.

Minimum gross monthly income
$5,400
Minimum gross annual income
$64,800

How it’s calculated

  • Minimum monthly income = rent × multiplier = $1,800 × 3 = $5,400
  • Minimum annual income = monthly income × 12 = $5,400 × 12 = $64,800

Amounts are shown to the cent when needed. The ratio is rounded to one decimal place and the income multiple is rounded down to two decimal places.

Summary

Monthly rent: $1,800
Income multiplier: 3x (chosen by the landlord)
Minimum gross monthly income: $5,400
Minimum gross annual income: $64,800

Ask about income before the showing

Start a free application form that already asks for monthly income and its source, so you can compare answers with your requirement before you meet anyone. RentForms doesn’t verify income or reject applicants.

  • Questions about monthly income and income source, added to the creator’s defaults
  • Your rent, if you entered one
Start a form with income questions

Free to start. You can publish without an account; we email you a link to verify the form.

The formulas

  • Minimum monthly income = monthly rent × multiplier
  • Minimum annual income = minimum monthly income × 12
  • Rent-to-income ratio = monthly rent ÷ gross monthly income × 100
  • Income multiple = gross monthly income ÷ monthly rent

A 3x multiplier and a 33.3% ratio describe the same requirement: rent of one third of gross income. The calculator uses unrounded values, rounds the ratio to one decimal place, and rounds the income multiple down to two decimal places so a result just under your multiplier never appears to meet it.

3x rent examples

Monthly rentMonthly income at 3xAnnual income at 3x
$1,000$3,000$36,000
$1,500$4,500$54,000
$2,000$6,000$72,000
$2,500$7,500$90,000

These figures illustrate the arithmetic for a 3x multiplier. They aren’t a recommendation for your property.

Using a multiplier fairly

  • Pick one multiplier per property and apply it to every applicant.
  • Decide in advance which income you count, such as wages, benefits or a co-applicant’s income.
  • Decide whether you accept a guarantor when income falls short, and say so in your criteria.

Write your requirement down with the screening criteria builder, or read more about income requirements on rental applications and guarantor requirements.

Common questions

What is the 3x rent rule?
It’s a common landlord guideline that an applicant’s gross monthly income should be at least three times the monthly rent. At $1,500 rent, that is $4,500 per month. It’s a convention, not a law, and landlords use different multipliers.
Should I use gross or net income?
Most income multipliers are stated in gross income, before taxes and deductions. This calculator assumes gross income. If you use net income, say so in your criteria, because the same multiplier means a much higher requirement.
What is the 40x rent rule?
Some landlords state the rule as annual income of at least 40 times the monthly rent. That works out to about 3.33 times the rent per month. Enter 3.33 as the multiplier to compare.
Is it legal to require a minimum income?
It depends on where the property is. Some states and cities limit income requirements or how certain income, such as housing vouchers, is counted. Check local rules before you set or apply a requirement.

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