1. What is the Rent Affordability Rule?

The general rule for rent affordability in Singapore suggests that your monthly rent should not exceed 30% of your gross monthly income. This helps ensure financial stability while renting a flat.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• \( Rent \) — Affordable monthly rent (SGD)
• \( Income \) — Your gross monthly income (SGD)
• \( 0.3 \) — 30% affordability ratio

Explanation: The calculation ensures you don't spend more than 30% of your income on rent, leaving room for other expenses and savings.

3. Importance of Rent Affordability

Details: Maintaining rent at or below 30% of income helps prevent financial stress, allows for savings, and ensures you can cover other living expenses in Singapore's high-cost environment.

4. Using the Calculator

Tips: Enter your gross monthly income in SGD. The calculator will show the maximum recommended rent based on the 30% rule.

5. Frequently Asked Questions (FAQ)

Q1: Is 30% a strict rule for rent in Singapore?
A: While 30% is a guideline, some may spend slightly more (up to 35%) if they have minimal other expenses, but exceeding 40% is generally not recommended.

Q2: Should I include bonuses in my income calculation?
A: For stability, base calculations on your fixed monthly salary rather than variable income like bonuses.

Q3: Does this include utilities and other housing costs?
A: No, this is just for rent. You should budget separately for utilities, internet, and other housing-related expenses.

Q4: How does this change for shared flats?
A: If sharing with roommates, your portion should still follow the 30% rule based on your individual income.

Q5: Are there exceptions to this rule?
A: Some may spend less (e.g., students) or those with significant savings might adjust, but it's a good starting point for most renters.