Loading page
Compare tenant or guarantor annual gross income with rent using editable common-practice thresholds.
Income to annual rent
2.50×Tenant annual gross income of £60,000 is 2.50× annual rent of £24,000.
| Threshold | Annual income required | Result |
|---|---|---|
| 30× monthly rentTenant | £60,000 | Pass |
Example figures.
Rates as of
This calculator compares monthly rent with annual gross income and displays an income-to-annual-rent multiple. It also checks the entered income against either a tenant threshold or a guarantor threshold. The defaults are common-practice starting points. They are editable assumptions, not legal minimum incomes or government approval of a referencing policy.
Enter the full monthly rent in pounds. Choose No, tenant to check a tenant’s income, or Yes, guarantor to check a guarantor’s income. Then enter that person’s gross income for a full year before tax and deductions. Switching to a guarantor changes whose income is being tested; it does not add the guarantor’s income to the tenant’s income.
The tenant default is annual income equal to 30 times monthly rent, which is 2.5 times annual rent. The guarantor default is 36 times monthly rent, which is 3 times annual rent. Both multiplier fields can be changed.
The tenant example uses £2,000 monthly rent and £60,000 annual gross income. Annual rent is £24,000, so income divided by annual rent is 2.50×.
With the default tenant multiplier of 30, the required annual income is £60,000. The entered income equals that threshold, so the tenant check passes. If a guarantor has the same £60,000 annual income, the default multiplier of 36 requires £72,000 and that guarantor check fails.
A guarantor with £72,000 annual gross income would meet that default threshold exactly at the same rent. To check a real guarantor, replace the income field with their own annual figure after changing the selection. Neither example confirms the person’s income, makes a tenancy decision or establishes that a guarantee can be enforced.
A pass or fail describes only the selected mathematical comparison. It does not approve an applicant or make a tenancy decision. It does not assess take-home pay, existing debts, the guarantor’s own housing costs, household bills or savings. Gross income is used because the supplied thresholds are expressed on that basis. Entering net income would answer a different question and could make the comparison misleading.
The ratio shown on screen is rounded to two decimal places. Pass or fail uses the exact entered amounts instead, including pennies. For example, income of £59,999.99 against £2,000 monthly rent is below the £60,000 tenant requirement even though its displayed ratio rounds to 2.50×. Equality passes, but rounding the display never turns a shortfall into a pass.
Only one annual income amount is entered. The tool cannot decide whether a joint application should use combined income, how irregular earnings should be evidenced, or whether a referencing provider’s guarantee terms are suitable. Agree the basis of the comparison first, and keep the income evidence separate from the numerical result.
The arithmetic works in pounds throughout the UK, but the legal context must be checked for the property’s nation. The linked GOV.UK rental discrimination guide concerns England and points to separate guidance for Scotland and Wales. It does not set or endorse the 30× and 36× income multipliers used here.
For England, GOV.UK’s benefit-income guidance says that affordability checks must treat benefit income in the same way as other income. A convenient multiplier is not a reason to ignore an income source. Apply lawful criteria consistently, establish the relevant rules before using a check, and do not treat this output as a complete referencing assessment.
Ask a qualified local adviser if the treatment of income is disputed, an applicant challenges a screening condition, a joint tenancy changes who is liable, or a guarantor is unsure about the proposed obligation. Bring the written criteria, income documents and agreement.
The default comparison requires annual gross income of at least 30 times monthly rent, equivalent to 2.5 times annual rent. From our calculator, £2,000 monthly rent gives a £60,000 threshold. This is an editable common-practice rule, not a legal minimum.
Choose Yes, guarantor and enter the guarantor’s own annual gross income. The default compares it with 36 times monthly rent, equivalent to 3 times annual rent. Passing this calculation does not establish whether a guarantee is acceptable or enforceable.
Enter annual gross income before tax and deductions, together with monthly rent. The displayed ratio divides that income by 12 months of rent. Do not enter monthly take-home pay in the annual gross income field.
No. They are common-practice starting points and both can be edited. The official sources below provide discrimination context, not government endorsement of these multipliers.
Yes, because the two default thresholds are different. From our calculator, £60,000 annual income and £2,000 monthly rent meet the £60,000 tenant threshold but fall below the £72,000 guarantor threshold. Replace the income with the guarantor’s actual figure when switching the check.
For England, the linked GOV.UK guidance says affordability checks must treat benefit income in the same way as other income. A default multiplier is not permission to exclude that income. Check the rules for the property’s UK nation and seek advice if the treatment of income is disputed.
Compare three methods for part of a month, with daily rates and days charged.
See gross and net rental yield after running costs, void weeks and stamp duty.
