Finance category
Mortgage, loan, investing, tax, and money calculators.
Payment-to-Income Ratio Calculator
Compute the classic front-end (housing only) and back-end (total debt) payment-to-income ratios. Compare against your target — the 28/36 rule is the conservative budgeting guide.
Front-end (housing) ratio
30.0%
target: 28%
Back-end (total debt) ratio
35.9%
target: 36%
Max housing at target
$3,220
lower of front/back constraint
Housing headroom
-$230
over budget
28/36 rule
The classic 28/36 rule says housing costs (PITI) should stay under 28% of gross income, and total debts (housing + everything else) under 36%. Lenders today often allow up to 50% back-end DTI on conventional loans, but the conservative ratio is the safer planning target.
Front-end vs back-end: front-end ratio is housing alone. Back-end adds car loans, student loans, credit card minimums, and other recurring debt obligations.
How to Use
- Enter gross monthly income.
- Enter your full PITI (principal + interest + taxes + insurance + HOA + MI).
- Enter other monthly debts (car, student loan, credit card minimums).
- Set your front-end and back-end targets — 28/36 is conservative; lenders often allow higher.
- Read both ratios and the headroom available within targets.
Frequently Asked Questions
What's the 28/36 rule?
Housing costs (PITI) under 28% of gross income; total debts under 36%. Originated as bank-conservative underwriting in the mid-20th century and still useful as a personal budget rule of thumb.
What DTI do lenders actually allow?
Conventional: up to 50% back-end on stronger files (DU/LP-approved). FHA: up to 56.99% with compensating factors. VA: residual income test, no hard DTI cap. The 28/36 is conservative target, not lender max.
Why use front-end and back-end ratios?
Front-end isolates housing burden. Back-end captures total debt load. Both matter — a borrower with low housing but huge car loans is a different risk than one with high housing but no other debt.
Should I use net or gross income?
Lenders use gross (pre-tax, pre-deduction) for DTI. For your own planning, the same rule on net income gives a more honest budget picture — your actual take-home determines what bills you can pay.
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Mortgage Payment Shock Calculator
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Down Payment Calculator
Lower loan amount lowers PITI and DTI.
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See net take-home alongside gross income.
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