28/36 Rule Calculator
Calculate your debt-to-income ratios and mortgage affordability using the 28/36 rule
Calculate 28/36 Rule
Your total monthly income before taxes and deductions
Housing Costs (PITI)
Total monthly housing payment including principal, interest, taxes, and insurance
Car loans, credit cards, student loans, and other recurring debt payments
28/36 Rule Analysis
Front-End Ratio
GoodBack-End Ratio
GoodYour debt levels are within recommended guidelines for mortgage qualification.
Recommendations
Example Calculation
Sample Scenario
Monthly Income: $4,000
Housing Costs (PITI): $900
Other Debts: $300 (car loan)
Total Debt: $1,200
28/36 Rule Analysis
Front-End Ratio: $900 ÷ $4,000 × 100% = 22.5% ✓
Back-End Ratio: $1,200 ÷ $4,000 × 100% = 30% ✓
Result: Meets both 28% and 36% thresholds
Additional Capacity: $240/month for more debt
28/36 Rule Breakdown
Front-End Ratio
Housing costs should not exceed 28% of gross monthly income
Back-End Ratio
Total debt should not exceed 36% of gross monthly income
PITI Components
Principal
Amount toward loan balance
Interest
Cost of borrowing money
Taxes
Property taxes
Insurance
Homeowner's insurance
Why Use 28/36 Rule?
Standard used by lenders for mortgage qualification
Helps maintain financial stability
Leaves room for savings and emergencies
Prevents over-borrowing
Understanding the 28/36 Rule
What is the 28/36 Rule?
The 28/36 rule is a guideline used by lenders to determine how much mortgage debt you can safely afford. It consists of two key ratios that help assess your ability to manage housing payments and total debt obligations.
Front-End Ratio (28%)
Your housing costs (PITI) should not exceed 28% of your gross monthly income. This includes principal, interest, property taxes, and homeowner's insurance.
Back-End Ratio (36%)
Your total monthly debt payments should not exceed 36% of your gross monthly income. This includes housing costs plus all other recurring debt obligations.
Calculation Formulas
Front-End Ratio = (Housing Costs ÷ Income) × 100%
Back-End Ratio = (Total Debt ÷ Income) × 100%
Why These Ratios Matter
- •Ensures you can afford mortgage payments
- •Maintains financial flexibility for savings
- •Reduces risk of financial stress
- •Helps qualify for better loan terms
Note: While the 28/36 rule is widely used, some lenders may accept higher ratios based on other factors like credit score, down payment, and overall financial profile.