Rent i can afford based on salary

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Want to know how much rent you can actually afford? Here’s how the rent budget calculator works: Enter your monthly after-tax income and our calculator will tell you how much you can afford to spend on rent. Adjust the slider to see how spending more or less leaves room in your budget for savings and discretionary spending.

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Apartment hunting is difficult enough as it is, but our rent budget calculator can help simplify the equation. Whether you’re moving out for the first time or you’re a seasoned pro, knowing how much rent you can afford can make the apartment search a lot easier. 

In general, experts find the average spending on rent and utilities to be around 30 percent of your monthly income. Even though this percentage can vary widely based on income, this rule of thumb was set to ensure most people will not be cost-burdened by their living expenses. If you’re paying down significant debts or are saving for a big purchase, a thrifty budget might put your rent at 20 percent of your total monthly income. On the other hand, if your living space is a huge priority, you might choose to splurge by spending 40 percent of your income on rent. 

There’s ultimately a huge number of factors that go into determining how much you spend on rent. Things like the location, size, and amenities can make all the difference. You’ll have to decide for yourself how much you’re willing to spend and forego in other areas. 

To help you find your dream apartment, we created these helpful printables. There’s an apartment comparison checklist if you’re looking at different options and questions to ask your realtor to make the search easier. To spruce your space up on the cheap, there’s also a printable decor sign. Check them all out below:

Download Apartment Printables

Next Step: Set Up Your Budget

Once you understand how much of your income will go towards your rent, it’s the perfect time to take another look at your budget. An easy place to start is with a 50/30/20 budget, which means you spend 50 percent of your income on necessities, 30 percent on your wants, and 20 percent on your savings or debts. 

After you move to your new apartment, your finances may change. If you find you have a bit more (or less) wiggle room, Mint can help you stay on top of your budget:

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There are many ways to calculate affordable rent. Some people use the 40x rule since many landlords require that your annual gross income be at least 40 times your monthly rent. To calculate, simply divide your annual gross income by 40 - if you make $120,000 a year, you can spend $3,000 on rent.

An equivalent is the 30% rule, meaning that you can put 30% of your annual gross income in rent. If you make $90,000 a year, you can spend $27,000 on rent, and so your monthly rent will be $2,250.

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More To Consider

While these rules are helpful, none of them factor in expenses. Renting an apartment can cost you more than you imagine. For instance, some buildings charge a pet fee for each pet you have. In New York City, your rent might go up by $35 for you to keep a pet.

Other amenities also play a huge factor. Some buildings charge monthly gym fees and some others don't. If you live in a building that does not have a fitness center, you might spend more on gym memberships.

Nor do the rules mentioned above take into account your financial situation or lifestyle. For example, a newly graduated might be carrying a student loan and has to set aside $200 to $300 per month to repay the loan. An independent contractor might need to have a liability insurance policy in place and has to pay for health insurance himself/herself.

Inflated Costs of City Living

Utilities, especially energy costs, have risen through the roof over the last several years. If you make $120,000 or less per year, you can expect to spend as much as 5% of your monthly net income on your electricity, water, phone, and internet bills.

Food budget takes up about 10% of your monthly net income, according to the U.S. Department of Agriculture. Keep in mind that if you eat out often, or like to frequent bars and nightclubs, this number can rapidly balloon out of control.

Transportation is usually 5% of your monthly net income. If you own a car, however, your costs will be substantially higher - you'll need to shell out extra for gasoline, parking, car insurance, etc.

Bad / No Credit

Renting an apartment might cost you more than you imagine. If you are renting with a bad credit score or no credit history, expect to put down more cash for security deposit. You might also find yourself in need of a guarantor if your income does not meet the landlord's requirement.

Having a guarantor often means additional fees, but if chances are your family or friends will be willing to help out. You might also spend extra $10 to $30 per month on renters insurance. In short, keep in mind of all possible expenses when you estimate how much rent you can afford!

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