Rent-to-Income Ratio
34.67%
Annual Rent
A$26,000.00
Monthly Rent
A$2,166.67
Affordable Weekly Rent (30% rule)
A$432.69
Rates & sources
SDLT/LTT/LBTT bands vary between England, Wales, Scotland and Northern Ireland. Use the appropriate calculator.
Source: HMRC / Welsh Revenue / Revenue Scotland — figures refreshed at the start of each tax year.
When to use this calculator
- Before buying, renting, refinancing, or reviewing a property investment.
- When you want to compare cash flow, yield, growth, and ownership costs side by side.
- When you need a fast estimate before speaking to an agent, lender, or adviser.
- When you are assessing whether a rental property still makes financial sense after a mortgage rate change.
- When you want to compare the total cost of renting against owning over a five- or ten-year horizon.
A realistic Australia planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Annual Income (A$)
A$80,000
Weekly Rent (A$)
A$1,400
After entering these figures, review rent-to-income ratio, annual rent and monthly rent together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Rent-to-Income Ratio
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Annual Rent
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Monthly Rent
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Affordable Weekly Rent (30% rule)
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Method & assumptionsAuthoritative sources
This calculator applies the standard 30% gross income rule to assess rental affordability. The rent-to-income ratio divides your annual rent by your gross annual income and expresses the result as a percentage. A ratio above 30% is the threshold commonly used by AHURI and housing policymakers to define housing stress. The maximum affordable weekly rent field shows the highest rent that would keep you within the 30% guideline at your stated income level.
The 30% rule is a planning guide, not a strict financial limit. Renters with high incomes can often comfortably afford ratios above 30% given that a smaller share of their income covers essentials beyond rent. Conversely, lower-income households may find even a 25% ratio creates pressure once food, utilities, and transport costs are factored in. Always build a complete monthly budget before committing to a rental, and factor in bond (usually four weeks' rent payable upfront), connection fees, and any ongoing costs such as water usage charges not covered by your landlord.
Common mistakes
- !Comparing rent and ownership costs without including taxes, fees, and maintenance.
- !Using purchase price alone without testing the impact of financing or vacancy assumptions.
- !Relying on yield or growth in isolation instead of reviewing the full property case.
- !Forgetting Stamp Duty Land Tax (or its Scottish and Welsh equivalents), which can add thousands to the true cost of purchase.
- !Using optimistic rental growth figures without also testing a flat or declining rent scenario to check downside resilience.
What to do next
- Run a second scenario with a higher rate or lower rental yield to check downside resilience.
- Compare the result with a buy-versus-rent or stamp duty calculator before making an offer.
- Use the related guides below to understand agent fees, legal costs, and ongoing maintenance budgets.
- If you are assessing a buy-to-let, check the gross yield against the net yield after mortgage interest, voids, and management fees.
- Note down the key figures from this scenario to share with your solicitor or mortgage broker so they are working from the same assumptions.
Frequently asked
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