Could We Look At This One Again?

[The Wolf]

b1:75%
b2: $100.00


B3: $133.33

The formula suggested below seems to give errors when a percentage over 50%
is entered.


Known b1 percentage of monthly pay budgeted for rent
Known b2 rent

Unknown b3 what the tenant's monthly income would need to be to afford the
rent.

Not quite. The unknown should be approximately $2,700 if we change B1 to
33%.

If the rent was $900 and a guideline is they should budget 30%. Then what
would their monthly salary have to be to qualify. The monthly salary is the
unknown. The rent and percentage of budget is known.

I certainly did misunderstand (I must have been thinking income to the
landlord).

In that case, just turn it around:


B3: =ROUND(B2/B1,2)

 

[JE McGimpsey]

b1:75%
b2: $100.00


B3: $133.33

The formula suggested below seems to give errors when a percentage over 50%
is entered.


Known b1 percentage of monthly pay budgeted for rent
Known b2 rent

Unknown b3 what the tenant's monthly income would need to be to afford the
rent.

What errors are you getting?

=ROUND(B2/B1,2)

works for me unless B1 = 0, for which you could use

=IF(B2=0,"",ROUND(B2/B1,2))

However, is it reasonable to budget 75% of income for rent?

 

[The Wolf]

What errors are you getting?

=ROUND(B2/B1,2)

works for me unless B1 = 0, for which you could use

=IF(B2=0,"",ROUND(B2/B1,2))

However, is it reasonable to budget 75% of income for rent?

No 75% is not reasonable to budget for rent.

However I went up from 35% to 45% and the tenant's needed salary went DOWN
not up?????????????????????????

Unless I'm missing something here, that tells me something is amiss.

 

[JE McGimpsey]

No 75% is not reasonable to budget for rent.

However I went up from 35% to 45% and the tenant's needed salary went DOWN
not up?????????????????????????

Unless I'm missing something here, that tells me something is amiss.

Needed salary *must* go down as the % of salary goes up.

If the tenant should budget 10% of his income for rent, then to pay $100
in rent, he needs to make $1000.

OTOH, if he should budget 100% of his income for rent, he only needs to
make $100 to pay that same $100 for rent.

 

[The Wolf]

Needed salary *must* go down as the % of salary goes up.

If the tenant should budget 10% of his income for rent, then to pay $100
in rent, he needs to make $1000.

OTOH, if he should budget 100% of his income for rent, he only needs to
make $100 to pay that same $100 for rent.

Gotcha