Enter your monthly income and target rent to find the affordable rent cap, the rent-to-income ratio, and the monthly and annual income needed to pay the target rent.
Input Data
Results
At a glance:The affordable rent is income times the target ratio; the income needed for a target rent is the rent divided by that ratio.
Formula
affordableRent = monthlyIncome × ratioPercent%
rentToIncomeRatio = targetRent / monthlyIncome × 100%
requiredMonthlyIncome = targetRent / ratioPercent%
requiredAnnualIncome = requiredMonthlyIncome × 12
$$\text{AffordableRent} = \text{Income} \times \text{Ratio}\%$$$$\text{RentToIncome} = \dfrac{\text{TargetRent}}{\text{Income}} \times 100\%$$$$\text{RequiredIncome} = \dfrac{\text{TargetRent}}{\text{Ratio}\%}, \quad \text{AnnualIncome} = \text{RequiredIncome} \times 12$$How to Use
- Enter the monthly income and target ratio.
- Enter the target rent.
- Review the affordable cap, ratio, and required income.
FAQ
What share of income should rent take?
The international '30% rule' says rent should not exceed 30% of gross monthly income, about 40 times the monthly rent in annual income. It is only a guide; the right ratio depends on your other expenses, savings and lifestyle. In Hong Kong many tenants pay more.
What is the rent-to-income ratio, and why do landlords check it?
Rent-to-income ratio = monthly rent ÷ monthly income × 100%. Landlords use it as a quick gauge of a tenant's ability to pay. Many only consider tenants at or below 30%, then verify with proof of income.
What else should I budget besides rent?
Include management fees, rates, utilities, internet, home insurance, transport and moving costs. Leases usually require a deposit (commonly two months' rent) and the first month's rent, and tenancy stamp duty applies at signing. Set a full budget before fixing your rent ceiling.
Is rent in Hong Kong legally controlled or is there reference data?
General private residential tenancies have no broad rent-level control (only subdivided units are regulated under the 2022 Amendment Ordinance with tenancy security and a renewal-increase cap). For the overall market trend, refer to the Rating and Valuation Department's monthly Private Domestic Rental Index as an objective benchmark.
What is the ratio and rule behind this calculator?
The tool applies the internationally used 30% rule and rent-to-income ratio as an affordability guide — general personal-finance practice, not a legal standard. Market rent data can be referenced from the Rating and Valuation Department, and budgeting methods from the Investor and Financial Education Council (IFEC). Results are for estimation and planning only.
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.