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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.

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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

  1. Enter gross monthly income.
  2. Enter your full PITI (principal + interest + taxes + insurance + HOA + MI).
  3. Enter other monthly debts (car, student loan, credit card minimums).
  4. Set your front-end and back-end targets — 28/36 is conservative; lenders often allow higher.
  5. 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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