1. What is the Rent Split Formula?

The Rent Split Formula calculates how much each person should pay for shared accommodation based on their income proportion and an India-specific adjustment factor. This method ensures a fair distribution of rent according to earning capacity.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• \( \text{Total Rent} \) — The complete rent amount for the property (INR)
• \( \text{Individual Income} \) — The income of the specific person (INR)
• \( \text{Total Income} \) — Combined income of all occupants (INR)
• \( \text{India Adjustment} \) — Factor accounting for India-specific living costs (unitless)

Explanation: The formula proportionally distributes rent based on income, with an additional adjustment factor for Indian cost-of-living variations.

3. Importance of Fair Rent Calculation

Details: Calculating rent based on income ensures fairness in shared living situations, prevents financial strain on lower earners, and maintains harmonious roommate relationships.

4. Using the Calculator

Tips: Enter total rent in INR, individual income in INR, total combined income in INR, and India adjustment factor (typically between 0.8-1.2). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical India Adjustment value?
A: The default is 1.0, but may range from 0.8-1.2 depending on city (higher for metros like Mumbai/Delhi, lower for smaller towns).

Q2: Should utilities be included in total rent?
A: Yes, include all shared housing expenses (rent + utilities + maintenance) for accurate calculation.

Q3: How to handle different room sizes?
A: First calculate base rent using this method, then adjust for room size differences by mutual agreement.

Q4: Is this method legally binding?
A: No, this is a fairness calculator. Actual rent agreements should be documented separately.

Q5: How often should we recalculate?
A: Recalculate whenever incomes change significantly or when lease terms are renewed.