Free Legal Tool

Rent Affordability Calculator

Find out how much rent fits your budget using the standard 30% income-to-rent guideline — plus a more conservative and a more stretched comparison.

Budgeting guideline only, not legal or financial advice. Ontario law does not cap rent-to-income ratios for private rentals.

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Your Income

Income Type

Gross Annual Household Income ($) (before tax)

What You Can Afford

Enter your income and click Calculate Affordability.

📋 About the 30% Rule

The “30% of gross income” benchmark is a widely used budgeting guideline — including by the Canada Mortgage and Housing Corporation (CMHC) for measuring housing affordability — not a legal rule under Ontario's Residential Tenancies Act. Private landlords in Ontario are free to set whatever rent-to-income ratio they choose; the RTA regulates how much rent can go up (the annual guideline) and how tenancies can end, not what percentage of income a tenant should spend on rent.

This is different from Rent-Geared-to-Income (RGI) housing, a form of subsidized social housing where rent is legally calculated as a percentage of household income (generally around 30%) under provincial housing programs — a separate system from private market rentals.

Many landlords informally use a similar ratio (or ask for income documentation showing rent is roughly 30-40% of income) as part of screening a prospective tenant, alongside credit checks and references — but there is no legislated ceiling they must follow.

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Where the 30% Rule Comes From

Originally a mortgage-lending benchmark, now widely applied to rental budgeting by CMHC and most Canadian financial institutions.

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Not a Legal Cap

Ontario's Residential Tenancies Act does not limit the rent-to-income ratio a private landlord can charge or require.

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RGI Housing Is Different

Rent-geared-to-income social housing legally ties rent to income — private market rentals do not work this way.

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Factor In Utilities

Hydro, water, internet, and parking can add hundreds per month on top of rent — budget for total shelter cost, not just rent.

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Free to use on your own website or blog — just copy the code below. Includes attribution back to Legal Solutions Law Firm.

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Landlord-Tenant Questions?

Whether you're a tenant reviewing a lease or a landlord screening applicants, our Toronto team can help. Free 30-minute consultation.

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Rent Affordability Calculator

Where the 30% Rule Comes From

Not a Legal Cap

RGI Housing Is Different

Factor In Utilities

Landlord-Tenant Questions?

Speak With a Landlord & Tenant Lawyer Today

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