What's the 30% rule for rent?
A common budgeting guideline suggests spending no more than 30% of your gross or take-home monthly income on rent, leaving the rest for other expenses, savings, and debt repayment. It's a starting point rather than a strict rule — in expensive cities like Mumbai or Bengaluru, many people stretch to 35-40% out of necessity.
Should I use gross income or take-home income?
This calculator uses take-home (net) income, since that's what actually lands in your bank account each month. If you only know your annual CTC, use the in-hand salary calculator first to estimate your monthly take-home, then come back here.
Why does existing debt matter?
If you're already paying EMIs on a car loan, personal loan, or credit card, that income isn't available for rent — so a debt-adjusted recommendation gives a more realistic picture than looking at rent in isolation. As a rule of thumb, keeping rent plus all debt payments under 50% of your income leaves reasonable room for everything else.