28/36 Rule Calculator

Calculates the 28/36 rule for a given income, housing costs, and other debts to determine the front end ratio, back end ratio, and total debts.

Front End Ratio Formula

$17000 / $3900 * 100.0 = 435.9%.If John's housing costs are $3900 per month and his income is $17,000 per year, his front-end ratio is 435.9%. The result number means that for every dollar John earns, he can afford to spend about 43.6% of it on housing costs.

Back End Ratio Formula

$16000 / $7800 * 100.0 = 205.13%.The Back end ratio of John's income is $16000 / $7800 * 100, which equals 205.13%. The result, 205.13%, means John owes more in debts than he earns in income.

Total Debts Formula

$6600 + $12100 = $18700.John's total debts are $6600 + $12100, resulting in $18700. The total debt amount of $18700 represents John's overall financial obligation to lenders and creditors.

Meaning

The 28/36 rule is a financial guideline used to determine how much debt a household can safely manage. It states that no more than 28% of gross monthly income should go toward housing expenses (e.g., mortgage, taxes, insurance), and 36% should cover all debts combined, including housing, car loans, and credit cards