1. What is Rent Affordability with Guarantor?

The Rent Affordability Calculator with Guarantor helps determine how much rent a tenant can afford in India when they have a guarantor. It follows the standard 30% rule where rent should not exceed 30% of combined income.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Guarantor Income — Monthly income of the guarantor (INR)
• Tenant Income — Monthly income of the tenant (INR)
• 0.3 — Standard affordability ratio (30% of income)

Explanation: The calculation combines both incomes and applies the 30% rule to determine the maximum affordable rent.

3. Importance of Rent Affordability Calculation

Details: Calculating affordable rent helps tenants avoid financial strain and ensures landlords receive reliable payments. In India, many landlords require guarantors for rental agreements.

4. Using the Calculator

Tips: Enter both guarantor and tenant monthly incomes in INR. The calculator will show the maximum recommended rent based on the 30% rule.

5. Frequently Asked Questions (FAQ)

Q1: Why use 30% as the affordability ratio?
A: The 30% rule is a widely accepted standard that balances housing costs with other living expenses and savings.

Q2: Is this calculation specific to India?
A: While the 30% rule is global, this calculator is designed for the Indian rental market where guarantors are commonly required.

Q3: What if I don't have a guarantor?
A: Without a guarantor, most landlords will only consider your own income (Tenant Income × 0.3).

Q4: Are there exceptions to the 30% rule?
A: In high-cost cities like Mumbai, ratios up to 40% might be accepted, but this increases financial risk.

Q5: Does this include utilities and maintenance?
A: No, the 30% typically refers to base rent only. Additional housing costs should be considered separately.