Income Rent Ratio Calculator

Formula

The formula to calculate the Income Rent Ratio (IRR) is:

\[ IRR = \frac{MI}{MR} \]

Where:

Income Rent Ratio (IRR): The ratio of total take-home gross income to the total monthly rent paid for a house or apartment.
Monthly Gross Income (MI): The total income earned in a month before any deductions.
Monthly Rent (MR): The total rent paid for a house or apartment in a month.

Let's say the monthly gross income (MI) is $4,000 and the monthly rent (MR) is $1,000. Using the formula:

\[ IRR = \frac{4000}{1000} \]

We get:

\[ IRR = 4 \]

So, the income rent ratio is 4, meaning the monthly income is 4 times the monthly rent.