28/36 Rule Calculator

28/36 rule calculator shows how much house you can afford based on income and debts. Enter income and debts to see your maximum housing payment instantly.

28/36 Rule Calculator | Debt-to-Income Ratio for Mortgages
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The 28/36 Rule states that a household should spend a maximum of 28% of gross monthly income on housing and a maximum of 36% on total debt (housing + all other debts).

28/36 Rule Analysis
📊 DTI Analysis: —

Front-End DTI (Housing)

Actual Ratio —
Limit —

Back-End DTI (Total Debt)

Actual Ratio —
Limit —
Monthly Gross Income—
Proposed Housing Payment—
Other Monthly Debts—
Total Monthly Debt—
Maximum Housing Payment (28%)—
Maximum Total Debt (36%)—
Housing Payment Room—
Additional Debt Capacity—
DTI Scenarios at Different Housing Payments
Housing PaymentFront-End DTITotal DebtBack-End DTIStatus

Enter income details to view DTI scenarios.

Shows how DTI ratios change with different housing payment amounts.

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Hasnain Khan

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Hasnain Khan is a digital tools developer and Co-Founder of Techraxy, a platform dedicated to building modern web-based calculators and utility tools. He focuses on tool optimization, website performance, and creating accessible user experiences across categories like automotive, finance, construction, and everyday utilities.

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Introduction to 28/36 Rule Calculator

The 28/36 rule is a widely used mortgage lending guideline that helps determine how much house you can afford. It states that your monthly housing expenses should not exceed 28% of your gross monthly income, and your total monthly debt payments (including housing) should not exceed 36% of your gross monthly income. Lenders use this rule to assess your ability to repay a mortgage. This 28/36 Rule Calculator helps you determine your maximum housing payment and total debt limit based on your income. Enter your gross annual income and monthly debt payments. The calculator shows your maximum housing payment, total debt limit, and estimated home price range. Toolraxy built this calculator to help homebuyers understand their borrowing capacity and shop within their means.

How to Use This 28/36 Rule Calculator

              1. Enter your Gross Annual Income (before taxes)

              2. Enter your Monthly Debt Payments (car loans, student loans, credit cards, etc.)

              3. Enter your Down Payment (cash available)

              4. Enter the Interest Rate (current mortgage rate)

              5. Select your Loan Term (15 or 30 years typical)

              6. Click Calculate to see your affordability

              7. Review your maximum housing payment and total debt limit

              8. See your estimated affordable home price

Formula Section

Gross monthly income:

Gross Monthly Income = Annual Gross Income ÷ 12

Maximum housing payment (28% rule):

Max Housing Payment = Gross Monthly Income × 0.28

Maximum total debt (36% rule):

Max Total Debt = Gross Monthly Income × 0.36

Available for mortgage after existing debts:

Available for Mortgage = Max Total Debt – Existing Monthly Debts

Effective housing budget (lower of 28% rule or available):

Housing Budget = Min(Max Housing Payment, Available for Mortgage)

Maximum loan amount:

Loan Amount = Housing Budget × Loan Factor

Maximum home price:

Max Home Price = Down Payment + Loan Amount

Front-end DTI:

Front-End DTI = (Housing Payment ÷ Gross Monthly Income) × 100

Back-end DTI:

Back-End DTI = (Total Monthly Debt ÷ Gross Monthly Income) × 100

Where:

  • 28% Rule = Maximum housing payment as a percentage of gross income

  • 36% Rule = Maximum total debt as a percentage of gross income

  • DTI = Debt-to-Income ratio

  • Loan Factor = Amount borrowed per $1 of monthly payment based on rate and term

Real-Life Examples Section

  • Example scenario:

    • Gross annual income: $85,000

    • Monthly debt payments: $500 (car loan + student loans)

    • Down payment: $30,000

    • Interest rate: 6.5%

    • Loan term: 30 years

    Calculations:

    • Gross monthly income: $85,000 ÷ 12 = $7,083

    • Max housing payment (28%): $7,083 × 0.28 = $1,983

    • Max total debt (36%): $7,083 × 0.36 = $2,550

    • Available for mortgage after debts: $2,550 – $500 = $2,050

    • Effective housing budget: $1,983 (28% rule is lower)

    • Maximum loan amount (at 6.5%, 30 years): ~$313,000

    • Down payment: $30,000

    • Maximum home price: ~$343,000

FAQs

1. What is the 28/36 rule?
The 28/36 rule is a mortgage lending guideline that says your monthly housing payment should not exceed 28% of your gross monthly income, and your total monthly debt should not exceed 36% of your gross monthly income.

2. How is the 28/36 rule calculated?
Max housing payment = Gross monthly income × 0.28. Max total debt = Gross monthly income × 0.36. The lower of the two limits determines your housing budget.

3. What is included in the 28% housing payment?
The 28% housing payment includes principal, interest, property taxes, and homeowners insurance (PITI). Some lenders also include HOA fees and PMI.

4. What is included in the 36% total debt?
The 36% total debt includes housing costs plus all other monthly debt obligations: car loans, student loans, credit card minimums, personal loans, and child support.

5. What is the difference between front-end and back-end DTI?
Front-end DTI measures housing costs as a percentage of income (28% rule). Back-end DTI measures total debt as a percentage of income (36% rule).

6. Is the 28/36 rule a strict requirement?
No. It is a guideline. Some lenders allow DTI up to 43% or even 50% with compensating factors like high credit scores, large down payments, or significant cash reserves.

7. What is a good DTI ratio for a mortgage?
A DTI of 36% or lower is considered excellent. 36-43% is acceptable for many loans. Above 43% may require compensating factors or specific loan programs.

8. What types of loans use the 28/36 rule?
Conventional loans typically follow the 28/36 rule. FHA loans may allow higher DTI (up to 50%). VA loans are more flexible. The 28/36 rule is a general guideline across loan types.

Disclaimer

This 28/36 Rule Calculator is provided for educational and planning purposes only. Results are based on the 28/36 lending guideline and the numbers you enter. Actual mortgage approval depends on credit score, employment history, property taxes, insurance, HOA fees, and lender-specific requirements. This tool does not constitute financial or mortgage advice. Consult a licensed mortgage lender or financial advisor before making home purchase decisions. Toolraxy is not responsible for any actions taken based on these calculations.

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