📊 28/36 Rule Calculator
Calculate maximum mortgage and debt payments
Your total monthly income before taxes
Car loans, credit cards, student loans, etc. (excluding new mortgage)
How to Use This Calculator
Enter Monthly Income
Input your total monthly gross income (before taxes). This is your starting point for the 28/36 rule calculation.
Enter Existing Debt (Optional)
Enter your monthly debt payments (car loans, credit cards, student loans, etc.) excluding the new mortgage payment you're calculating for.
Review Results
See the maximum housing payment (28% rule) and maximum total debt payment (36% rule). This helps you understand what mortgage you can qualify for.
Formula
Maximum Housing Payment = Monthly Income × 0.28 (28%)
Maximum Total Debt = Monthly Income × 0.36 (36%)
Available for Other Debt = Maximum Total Debt - Maximum Housing
The 28/36 Rule:
• 28% Rule: Maximum 28% of gross monthly income for housing (PITI)
• 36% Rule: Maximum 36% of gross monthly income for total debt (housing + other debts)
Example Calculation:
If monthly income is $5,000:
• Max housing (28%) = $5,000 × 0.28 = $1,400/month
• Max total debt (36%) = $5,000 × 0.36 = $1,800/month
• Available for other debt = $1,800 - $1,400 = $400/month
About 28/36 Rule Calculator
The 28/36 rule is a standard guideline used by lenders to determine how much mortgage debt a borrower can afford. The rule states that you should spend no more than 28% of your gross monthly income on housing costs (PITI: Principal, Interest, Taxes, and Insurance) and no more than 36% of your gross monthly income on total debt payments (housing plus other debts like car loans, credit cards, student loans). This calculator helps you determine the maximum housing payment and total debt you can afford based on your income.
When to Use This Calculator
- Mortgage Pre-qualification: Determine what mortgage you can afford
- Budget Planning: Plan your housing and debt budget
- Home Shopping: Know your price range before house hunting
- Debt Management: Understand how existing debt affects mortgage qualification
- Financial Planning: Plan for homeownership while managing other debts
Understanding the 28/36 Rule
- 28% Rule (Front-End Ratio): Maximum 28% of income for housing (PITI)
- 36% Rule (Back-End Ratio): Maximum 36% of income for total debt payments
- PITI: Principal, Interest, Property Taxes, and Insurance
- Gross Income: Income before taxes and deductions
- Lender Guidelines: Many lenders use this as a baseline, but may go up to 43% in some cases
Why Use Our Calculator?
- ✅ Quick Calculation: Instantly see maximum payments
- ✅ Debt Consideration: Accounts for existing debt in calculations
- ✅ Mortgage Planning: Understand what you can afford
- ✅ Budget Tool: Plan your housing and debt budget
- ✅ 100% Free: No registration or payment required
Tips for Using the 28/36 Rule
- Be Conservative: Just because you can borrow doesn't mean you should
- Consider Other Expenses: Factor in utilities, maintenance, and unexpected costs
- Emergency Fund: Maintain savings outside of housing costs
- Debt Reduction: Pay down existing debt to qualify for larger mortgages
- Income Stability: Ensure your income is stable before maxing out ratios
Frequently Asked Questions
What is the 28/36 rule?
The 28/36 rule is a mortgage qualification guideline: spend no more than 28% of gross monthly income on housing (PITI) and no more than 36% on total debt payments. It's used by lenders to assess mortgage affordability.
Is the 28/36 rule a strict requirement?
The 28/36 rule is a guideline, not a strict requirement. Many lenders may approve mortgages with higher ratios (up to 43% or even 50% in some cases), especially for borrowers with good credit, low debt, and stable income. However, staying within 28/36 is generally considered safer and more affordable.
What counts as "housing payment"?
Housing payment (PITI) includes: Principal (loan repayment), Interest (mortgage interest), Property Taxes, and Insurance (homeowner's insurance and possibly PMI). It does not include utilities, HOA fees, or maintenance costs.
What if I exceed the 36% rule?
If you exceed 36%, you may still qualify for a mortgage, but you might face higher interest rates or need a larger down payment. Consider paying down existing debt to improve your debt-to-income ratio, or look for a less expensive home to reduce your housing payment.