|Advanced||Simple||Early Payoff||Refinance||HELOC||Recast||Interest Only||Biweekly||Extra Payments||Free Widget|
You can afford up to $3,600 per month on rent. However, it is recommended to keep rental fee below $2,800 per month. Some landlords do not accept tenants with more than 1/3 of gross income on rent, which is $3,300.
You can afford to spend $3,600 on rent each month.
The cost of living varies from state to state and family to family. $120,000 may seem a lot for one family that lives in Mississippi, but it may not be much for a family that lives in New York where the cost of living is much higher. You should also make sure you factor in your monthly expenses and debts that you may have before deciding how much you should spend on rent.
One should add up all the bills including credit cards, utilities, cell phones, transportation, loans, cable costs, insurance, and any other bills that you may have.
Then subtract the total monthly expenses from your take home pay, which is your monthly salary after tax and other deductions.
The tax rate may also have an effect on your ability to pay your rent. The tax rate on $120,000 will be lower if you have dependents and a family to take care, but your expenses will be higher.
New graduates that are just starting their first jobs may be surprised to find out how much deductions there are on their salary.
After you factor in all the expenses that you have each month, you can then get a fairly accurate estimate on how much you can afford to spend on rent with your yearly $120K income.I make 125000 a year how much rent can I afford
©2022 Mortgage Calculator Excel