Finance

28/36 Rule Calculator

The 28/36 guideline: housing costs should be ≤28% and total debt ≤36% of gross monthly income.

Gross Monthly Income ($)

Monthly Housing Cost ($ — mortgage/rent + tax + insurance)

Other Monthly Debts ($ — car, student loans, credit cards, etc.)

The 28/36 Rule:
Front-End Ratio = Housing Cost / Gross Income ≤ 28%
Back-End Ratio = (Housing + All Debts) / Gross Income ≤ 36%

What is the 28/36 Rule?

The 28/36 rule is a guideline that most mortgage lenders use to determine how much debt a borrower can handle:

28% (Front-End Ratio) — Your total housing costs (mortgage, property tax, insurance, HOA) should not exceed 28% of your gross monthly income.
36% (Back-End Ratio) — Your total monthly debt obligations (housing + car payments + student loans + credit card minimums) should not exceed 36% of your gross monthly income.

What if You Don't Meet the Guidelines?

FHA loans allow up to 31%/43% DTI. VA loans may go up to 41% back-end. Some conventional loans accept 45% or even 50% back-end with strong compensating factors (high credit score, large down payment, significant savings).