Rent Affordability Calculator: Can You Afford That Apartment?

You’ve nailed down the area where you want to live and you’re scouring to find the best apartment for your budget. However, there’s more to renting an apartment than just the rent. Other charges, bills and your income can have a huge impact on what kind of apartment you can afford. Having an idea of your monthly budget before you sign your name on the dotted line is crucial to ensure you’re not in over your head money-wise. The rule of thumb is you should spend up to 30% of your income on housing. To figure out this number, divide your gross or pretax earnings by 40. For example, if you make $40,000 a year, you should be able to afford $1,000. But here’s where millennials get it wrong. They forget about all of the other expenses that come with renting an apartment. Here are some additional charges that you should include in that new $1,000 budget.

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