What percentage of income should go to rent?

The traditional rule is 30% of gross income. Financial planners often recommend 25-30% of net (after-tax) income for comfort. Above 30% of gross is classified as 'rental stress' by the Australian government.

Is the 30% rule still relevant?

It's a useful starting point but imperfect. Someone earning $200K can comfortably spend 35%+, while someone on $50K may struggle at 25%. The key is what's left after rent — if you can't cover expenses and save, rent is too high regardless of the percentage.

§ Tool · tier 1 · independent

Rental Affordability Calculator.

Calculate how much rent you can afford based on your income, expenses, and the 30% rule. Find out if your dream suburb is within budget.

CalculatorFree, no signupOn-deviceupd May 2026

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Move the sliders or type in the form on the left — the math updates live as you go. Click Get AI verdict when you want a written analysis.

The golden rule of renting is the 30% rule — spend no more than 30% of your gross income on rent. But real affordability is more nuanced. After tax, expenses, debt repayments, and savings goals, your actual affordable rent may be higher or lower than the 30% figure. This calculator gives you three numbers: the 30% rule amount, your actual affordable rent based on your cash flow, and a recommended range that balances comfort with financial health.

§ Worked examples

Real-world scenarios

Young Professional — Sydney

Earning $85,000, single, $2,500/month expenses, wants to save $500/month.

30% rule: $490/week. After-tax cash flow limit: $440/week. Recommended: $400-$440/week. This means inner-city studios or sharing a 2-bed apartment. Spending above $490/week puts you in rental stress.

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

Rental Stress

When a household spends more than 30% of gross income on rent. Officially used by the Australian government as a housing affordability metric.

Commonwealth Rent Assistance

A government payment to help eligible Australians with rent costs, adding $50-$200/fortnight to their income support.

§ Pair it with

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Savings Goal Calculator

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Suburb Affordability Finder

Find suburbs that match your rental budget.

How to use

01Enter your gross annual income (before tax).
02Add partner income if you're sharing a rental.
03List your monthly non-rent expenses.
04Set a monthly savings goal.
05Include any debt repayments (HECS, car, etc.).
06See your 30% rule limit, cash-flow-based limit, and recommended range.

Key info

The 30% rule: spend no more than 30% of gross income on rent. Above 30% is considered 'rental stress'.
In Sydney, the average household spends 32-35% of income on rent — officially in rental stress.
Commonwealth Rent Assistance is available for some low-income renters ($50-$200/fortnight).
Your real affordability depends on net (after-tax) income, not gross.

Pro tips

Calculate using NET income (after tax), not gross — the 30% of gross rule was created decades ago when tax rates were different.
Include ALL costs: rent + utilities + internet + renter's insurance. Budget for these together.
If you're saving for a home deposit, consider spending less on rent to accelerate your savings — every $50/week = $2,600/year.
Shared housing can cut effective rent by 30-50% — consider your options.

Avoid these

Using the 30% rule on gross income without accounting for tax — your take-home is 20-35% less.
Forgetting utilities and bills — add $200-$400/month for power, gas, internet, water.
Not budgeting for renter's insurance — $15-$30/month protects your belongings.
Stretching to an expensive suburb and having zero savings buffer.

Disclaimer: Estimates only. Interest rates, fees and policies change frequently. Always verify with lenders directly. General information, not personal financial advice.

Last updated · May 2026