How much rent can I afford on my salary?
Keep your monthly rent cost to no more than about 40% of your take-home pay, and less if you can. On ₦400,000 a month take-home, that is up to ₦160,000 a month, or a home of up to about ₦1,590,000 a year on a 12-month Vaqnt plan. Also set money aside for the caution fee, service charge and other move-in costs.
Start with your take-home pay
Use what lands in your account each month after tax, pension and other deductions, not your gross salary. Then subtract the commitments you already have, such as loan repayments or money you send to family. What is left is what rent has to fit inside, alongside food, transport and power.
The 40% limit
Vaqnt only approves a plan if the monthly payment is no more than 40% of your take-home pay. That is a ceiling, not a target. If you have other big commitments, aim lower.
| Take-home pay a month | Most you’d pay a month | Yearly rent that fits |
|---|---|---|
| ₦250,000 | ₦100,000 | about ₦1,000,000 |
| ₦400,000 | ₦160,000 | about ₦1,590,000 |
| ₦600,000 | ₦240,000 | about ₦2,390,000 |
| ₦800,000 | ₦320,000 | up to ₦3,000,000 |
If your rate comes out lower than 3% a month, the same payment covers a little more rent. See every figure on the pricing page.
Don’t forget the move-in costs
Rent isn’t the only cost when you move. Plan for:
- The caution fee, which you get back at move-out less fair deductions. See What is a caution fee?
- The service charge for shared services. See What is a service charge?
- The origination fee of 3% or less if you use a Vaqnt rent plan
- Moving, furniture and connecting power
Stay ahead of renewal
Whichever way you pay, renewal comes round fast. Saving a little each month in the rent vault means next year’s costs don’t arrive all at once. For more ideas, read Budgeting for rent on a monthly salary.
Common questions
How much of my salary should go on rent?
No more than about 40% of your take-home pay, and less if you have other commitments. Vaqnt only approves plans where the monthly payment is 40% of take-home pay or less.
How much rent can I afford on ₦400,000 a month?
At 40%, up to ₦160,000 a month, which covers a yearly rent of about ₦1,590,000 on a 12-month Vaqnt plan at 3% a month.
Should I use gross or take-home pay?
Take-home pay: what reaches your account after tax, pension and other deductions.
What other costs come with moving?
The caution fee, the service charge, any upfront fee for a rent plan, and the cost of moving, furniture and connecting power.