3x Rent Calculator

What the 3x rent rule means

Many landlords require gross monthly income of at least three times the monthly rent.

The formula

Income needed = monthly rent × 3 (per month) or × 36 (per year)

Worked example

For $1,500 rent you need $4,500 a month, or $54,000 a year. At 40 hours a week that is about $25.96 an hour.

How to use this calculator

Enter the monthly rent and the income multiple the landlord uses, which is 3 for the standard rule. The 3x rent calculator shows the monthly and yearly income needed, the hourly wage that equals at 40 hours a week, and the rent as a share of that income. Compare the result with your gross pay, which is the figure before tax and other deductions.

What the result means

The result is a screening threshold, not a budget. A landlord uses it to decide whether to approve an application. It does not tell you whether the rent is comfortable for you. Three times the rent means rent takes one third of your gross income, about 33%. A common budgeting rule of thumb is to keep rent at or under 30% of gross income, which is slightly stricter. With $4,500 a month in income, 30% is $1,350, while the 3x rule would let you apply for $1,500.

More examples

The hourly figure divides the yearly income by 2,080 hours, which is 40 hours a week for 52 weeks.

You can also run the rule backward. Divide your gross monthly income by 3 to get the highest rent you would qualify for. For example, a $60,000 salary is $5,000 a month, and $5,000 ÷ 3 is about $1,667 in rent.

Other multiples for the same $1,500 rent

What changes the result

Rent and the income multiple are the only inputs. At a multiple of 3, every extra $100 of rent raises the income needed by $300 a month, or $3,600 a year. What counts as income is up to the landlord. Roommates on the same lease usually combine their incomes, so two people each earning $2,250 a month together meet the $4,500 needed for $1,500 rent. Ask the landlord which sources they count and what proof they want.

Common mistakes

• Using take-home pay. The rule is based on gross income, so your paycheck after tax understates what you qualify for.
• Treating approval as affordability. Debt payments, a car and childcare are not part of the 3x test.
• Assuming every landlord uses 3x. Ask for the screening criteria before you pay an application fee.
• Counting hours you do not work. The hourly figure assumes full-time work all year. If you work fewer hours, you need a higher wage to reach the same income.

Related calculators

For a budget based on your own income and bills, use the rent affordability calculator. If you plan to share, the rent split calculator divides the rent between roommates. Before a renewal, the rent increase calculator shows the new rent, which you can test here against the 3x rule.

Frequently asked questions