Rent-to-Income Calculator Canada
Your numbers
Monthly costs
Income
Add your gross income to see the ratio.
How the ratio is calculated
The calculator adds rent, utilities, tenant insurance, parking and internet into one monthly housing cost. It then divides that cost by your gross monthly income. It also shows the most you could spend at 30%, and how far over or under that line you are.
What counts as a good ratio
The 30% rule is a rough benchmark. It shows whether rent leaves enough room for everything else in your budget.
| Ratio | What it usually means |
|---|---|
| Under 30% | There is room for savings, emergencies and debt payments. |
| 30% to 40% | Many people manage, but debt payments and transportation can tip it quickly. |
| Above 40% | Money is usually tight. More income or cheaper housing will help far more than trimming small purchases. |
Rent-to-income questions
How much income do I need for rent in Canada?
Multiply your monthly housing cost by 12, then divide by 0.30. For $2,000 a month, that comes to about $80,000 a year before tax.
Should I use gross income or take-home pay?
The 30% benchmark uses gross income. Take-home pay still matters, because it shows what is left once rent and other housing costs are paid.
Should utilities count as rent?
Yes, for budgeting. Electricity, parking, tenant insurance and internet leave your account every month, just as rent does, so they belong in your housing cost.
This is an educational estimate. It does not replace advice from a housing, tax, legal or financial professional.