1. What is the Rent Affordability Rule?

The 30% rent affordability rule suggests that you should spend no more than 30% of your gross monthly income on rent. This is a standard guideline used by financial advisors and landlords in Pakistan and worldwide.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Income \) — Your total monthly income in PKR
• \( 0.3 \) — The 30% affordability factor

Explanation: This calculation helps determine the maximum rent you can afford while maintaining financial stability.

3. Importance of Rent Affordability

Details: Maintaining rent at or below 30% of income helps ensure you have enough money left for other essential expenses, savings, and emergencies, especially important in Pakistan's economic context for 2025.

4. Using the Calculator

Tips: Enter your total monthly income in Pakistani Rupees (PKR). The calculator will show the maximum recommended rent amount according to the 30% rule.

5. Frequently Asked Questions (FAQ)

Q1: Is the 30% rule strict for Pakistan?
A: While it's a guideline, actual affordability may vary based on location (Karachi vs smaller cities), family size, and other financial obligations.

Q2: Should I include bonuses in my income?
A: For this calculation, use only your stable, predictable monthly income. Don't include irregular income unless it's guaranteed.

Q3: What if I can't find housing at 30%?
A: In high-cost areas, you might need to adjust other expenses or consider shared housing. Try not to exceed 40% of income on rent.

Q4: Does this include utilities?
A: The 30% typically refers to base rent only. Utilities should be budgeted separately (another 5-10% of income).

Q5: How does inflation affect this in 2025?
A: As prices rise, maintaining the 30% rule may require income growth or more budget-conscious housing choices.