1. What is Rent Affordability?

Rent affordability refers to the percentage of income that should be spent on housing to maintain financial stability. The general rule is that rent should not exceed 30% of your monthly income.

2. How Does the Calculator Work?

The calculator uses the standard rent affordability formula:

Where:

• \( Rent \) — Affordable monthly rent (INR)
• \( Income \) — Monthly income (INR)
• \( 0.3 \) — 30% affordability ratio

Explanation: This calculation ensures you spend no more than 30% of your income on housing, leaving 70% for other expenses and savings.

3. Importance of Rent Affordability

Details: Maintaining affordable rent helps prevent financial stress, allows for savings, and ensures you can cover other essential living expenses.

4. Using the Calculator

Tips: Enter your monthly income in INR. The calculator will show the maximum recommended rent based on the 30% rule for India in 2025.

5. Frequently Asked Questions (FAQ)

Q1: Why use 30% as the standard?
A: 30% is widely accepted as the maximum percentage of income that should be spent on housing to maintain financial health.

Q2: Is this calculation specific to India?
A: While the 30% rule is global, this calculator uses INR currency and considers 2025 Indian housing market conditions.

Q3: Should I spend exactly 30% on rent?
A: 30% is the maximum recommended. Spending less allows more flexibility for other expenses and savings.

Q4: Does this include utilities?
A: The 30% typically refers to base rent only. Additional housing expenses should be considered separately.

Q5: How often should I reassess my rent affordability?
A: Recalculate whenever your income changes significantly or when considering a move.