How much you should spend on rent depends on many factors including your income, the area you are renting in, and if you are sharing expenses. Your monthly rent expense should not be more than 50 percent of your before tax total household income.
When budgeting, financial experts recommend the 50/30/20 rule. This approach recommends that 50 percent of your income goes towards living expenses, 30 percent goes towards daily expenses, and 20 percent goes towards savings.
Use these guidelines to help with your budget decisions. If your rent payment is greater than your living expenses, you may want to look for an apartment with a lower monthly payment.
Our rent calculator will help determine your rent budget as well as other expenses. Enter your total monthly income into the box. Then, use the slider on the right to see what different percentages of rent will look like for your income.
Based on the criteria you provided, your monthly rent budget is:$1,500 / month