Rent to Income Ratio Calculator

Formula

To calculate the Rent to Income Ratio (RIR):

\[ \text{RIR} = \frac{R}{I} \]

Where:

$\text{RIR}$ is the Rent to Income Ratio (rent:income)
$R$ is the total monthly rent ($)
$I$ is the monthly gross income ($)

What is Rent to Income Ratio?

The Rent to Income Ratio is a measure of the proportion of your income that goes towards rent. It is calculated by dividing the total monthly rent by the monthly gross income.

Example Calculation 1

Let's assume the following values:

Total Monthly Rent ($R$) = $1,200
Monthly Gross Income ($I$) = $4,000

Using the formula:

\[ \text{RIR} = \frac{1200}{4000} = 0.30 \]

The Rent to Income Ratio is 0.30 or 30%.

Example Calculation 2

Let's assume the following values:

Total Monthly Rent ($R$) = $800
Monthly Gross Income ($I$) = $3,200

Using the formula:

\[ \text{RIR} = \frac{800}{3200} = 0.25 \]

The Rent to Income Ratio is 0.25 or 25%.