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Rental Affordability Calculator

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.

Free to useNo data storedAI insightsUpdated: February 2026

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.

Enter Your Details

Enter Your Details

$

Your total annual income before tax

$

Leave at $0 if renting solo

$

Food, transport, utilities, subscriptions, debt repayments

$

How much you want to save each month

$

HECS, car loan, personal loan, credit card minimums

Tax rates vary slightly by state (Medicare levy)

Real-World Examples

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.

Frequently Asked Questions

Glossary

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.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026

How to Use
  1. Enter your gross annual income (before tax).
  2. Add partner income if you're sharing a rental.
  3. List your monthly non-rent expenses.
  4. Set a monthly savings goal.
  5. Include any debt repayments (HECS, car, etc.).
  6. See your 30% rule limit, cash-flow-based limit, and recommended range.
Key Information
  • 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 Mistakes
  • 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.
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