Follow the default numbers.
With monthly rent of $2,400, the model gives rent to gross income: 41.14%.
The formula is annual rent ÷ annual gross income. Open the breakdown to trace expenses and assumptions. Change one input at a time to see how your decision changes. This example uses scenario inputs; it is not an offer, tax bill, appraisal or legal determination.
Match the periods
Annual rent is monthly rent multiplied by twelve. Divide that by combined annual gross income for the rent-to-income percentage. The forty-times multiplier compares annual gross income directly with one month of rent. They are different expressions of a screening convention. A forty-times income requirement corresponds to thirty percent of gross income spent on rent.
A screening rule is not an approval decision
Property owners should use consistent, lawful criteria and account for applicable source-of-income and fair-housing protections. The calculator does not screen a person, verify earnings or recommend rejecting an applicant. A household may meet a gross-income rule while still having a tight budget, or use lawful resources not represented by salary alone. Follow the budgeting calculator to include essential spending.
Keep your assumptions with the result
Save the calculation to your deal file to reuse compatible inputs in another tool. The file stays in this browser on this device. Download the CSV to open the complete inputs, results and schedule in Excel or Google Sheets. Use PDF to print the report or save it as a PDF. A share link includes entered financial figures in its URL, so use it only with people you intend to share those numbers with.