ToolsRent affordability calculator
Rent affordability calculator
See whether a tenant's income covers the rent before you reference them. Enter the figures for an instant Pass, Conditional or Refer.
Income multiple
Rent-to-income limit
Enter the monthly rent and the tenant's income to see a Pass, Conditional or Refer result.
- 2.5× income rule
- Income must be at least 2.5× the annual rent.
- Rent-to-income
- Rent must take no more than 30% of gross income.
Affordability is one check. A full reference verifies income, employment and rental history, then gives you a clear recommendation to send the landlord.
Start a referenceHow the calculation works
Agents check affordability two ways. This tool runs both.
Income multiple
The tenant's gross annual income should be at least a set multiple of the annual rent. The most common threshold is 2.5×, though some agents use 2.7×, 3×, or higher. For a £1,200/month rent (£14,400/year), a 2.5× rule needs £36,000 gross annual income. Our guide to the affordability ratio calculation works through the formula step by step.
Rent-to-income
The rent should take up no more than a set share of gross income, commonly 30%. It works more like a payment stress test, which suits applicants with mixed or variable income. See the rent-to-income ratio guide for the thresholds agents use and where they fall short.
What income does a tenant need?
Here is the gross annual income a tenant needs at common rent levels under each rule. The two methods rarely agree, which is why the tool runs both.
| Monthly rent | Annual rent | 2.5× income multiple | 30% rent-to-income |
|---|---|---|---|
| £1,000 | £12,000 | £30,000 | £40,000 |
| £1,500 | £18,000 | £45,000 | £60,000 |
| £2,000 | £24,000 | £60,000 | £80,000 |
| £2,500 | £30,000 | £75,000 | £100,000 |
The 30% rule is stricter than the 2.5× multiple, so a tenant can clear one and fall short on the other. That gap is the judgement call, and it is where your agency policy decides the outcome.
Which method should you use?
The income multiple is the quick default. It is easy to explain to a landlord and fine for a straightforward salaried applicant. Rent-to-income works more like a payment stress test, so it suits applicants with variable or mixed income where a single multiple hides the real picture. Our affordability stress test guide covers how to apply it consistently.
What counts as a tenant's income?
Salary is the easy case. Most referencing files are not that tidy, so check how each income type stacks up before you total it.
- Self-employed and contractor income. Confirm it from accounts and statements rather than a headline figure. Our guide to bank statement analysis shows what to look for.
- More than one job or income stream. Weigh each source on its own before adding them up. See assessing multiple income sources.
- Income earned overseas. Verify and currency-convert it carefully for a tenant who has just moved to the UK. Our overseas income assessment guide walks through it.
When a tenant falls short
A tenant who does not clear the threshold on income alone is not an automatic refusal. A guarantor can cover the gap, and the guarantor is usually held to a higher multiple because they carry the whole rent on top of their own costs. Run the figures with our guarantor affordability calculator.
Related reading
This is a screening guide, not a formal affordability decision. Always verify income against documents and apply your agency's own policy.