1. What is the 30% Rent Rule?

The 30% rent rule is a common guideline suggesting that you should spend no more than 30% of your gross monthly income on rent. This helps ensure you have enough left for other expenses and savings.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Income \) — Your gross monthly income in SGD
• \( 0.3 \) — The 30% affordability ratio

Explanation: The calculation provides the maximum recommended rent based on your income level.

3. Importance of Rent Affordability

Details: Maintaining rent at or below 30% of income helps prevent financial stress and allows for balanced budgeting 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 according to the 30% rule.

5. Frequently Asked Questions (FAQ)

Q1: Is the 30% rule realistic in Singapore?
A: While challenging in expensive areas, it's a good target. Many Singaporeans spend 30-40% on rent.

Q2: Should I include bonuses in my income?
A: For this calculation, use only your stable monthly income, not variable bonuses or one-time payments.

Q3: What if my calculated rent is too low for Singapore?
A: Consider room rentals, HDB flats, or locations further from city center to stay within budget.

Q4: Does this include utilities?
A: No, this is for rent only. Budget separately for utilities (typically 5-10% of income).

Q5: Can I go above 30% if I have no debt?
A: While possible, exceeding 30% reduces flexibility for other expenses and savings.