28/36 Rule Calculator

Finance

This 28/36 rule calculator shows how much you can afford to spend on housing and total debt based on your income, a guideline lenders use to assess mortgage applications. Enter your monthly income and existing monthly debt payments, and it returns the 28% housing limit, the 36% total-debt limit, and how much is left for a housing payment after your other debts.

Formula

Housing: 28% | Total Debt: 36%
  • The front-end ratio caps housing costs at 28% of gross monthly income: max housing = income × 0.28.
  • The back-end ratio caps total debt payments at 36% of gross monthly income: max total debt = income × 0.36.
  • Available for housing subtracts your existing debt payments from the 36% limit, so other debts reduce what you can spend on housing.
  • Use gross (pre-tax) monthly income, and include recurring debts like loans and credit cards in the debt figure.
  • It is a guideline, not a guarantee; lenders also weigh credit score, down payment, and other factors.

Example Calculation

Inputs
  • Monthly Income (PKR): 100000
  • Monthly Debt Payments (PKR): 1000

With a monthly income of PKR 100,000 and PKR 1,000 of existing debt payments, the 28% housing limit is PKR 28,000 and the 36% total-debt limit is PKR 36,000. After subtracting your PKR 1,000 of debts, PKR 35,000 is available for a housing payment.

Frequently asked questions

What is the 28/36 rule?
A budgeting guideline that suggests spending no more than 28% of gross monthly income on housing and no more than 36% on total debt payments.
What is the difference between the 28% and 36% limits?
The 28% (front-end ratio) covers housing costs alone, while the 36% (back-end ratio) covers all debt, including housing plus loans and credit cards.
Should I use gross or net income?
Use gross (pre-tax) monthly income, since that is the figure lenders apply the 28% and 36% ratios to.
What counts as debt in this rule?
Recurring obligations such as the proposed housing payment, car loans, student loans, and minimum credit-card payments.
Is the 28/36 rule a strict requirement?
No. It is a widely used guideline. Some lenders allow higher ratios with strong credit or a large down payment, while others are stricter.