What the 28/36 rule is
The 28/36 rule is a simple guide for debt. It caps housing at twenty eight percent of gross income. It caps total debt at thirty six percent. You enter your monthly gross income. The tool shows both limits. Both come straight from your income.
Why the 28/36 rule matters
Lenders use it to judge what you can afford. It keeps housing and debt in safe bounds. Staying under it lowers your risk. It also leaves room for other costs. The max housing payment is the first guide. The total debt cap is the second. Together they frame a safe budget.
How to use this calculator
Enter one value. Put in your monthly gross income. The tool applies both percentages at once. You read the max housing payment first. Below it sits the max total debt. Change the income and both update.
How it is calculated
The math is two simple shares. Max housing = gross income × 28%. The total debt cap uses thirty six percent. Both come straight from your income. The results sit in your currency. You can check them in your head.
A worked example
Say your monthly gross income is six thousand. Twenty eight percent of that is one thousand six hundred eighty. That is your housing cap. Thirty six percent is two thousand one hundred sixty. That is your total debt cap. Keep your payments under both lines.
Reading the result
The headline is the max housing payment. It is the most to spend on housing. The second figure caps all your debt. Keep your real payments under both. That is the heart of the rule. Both caps scale with your income.
The two debt limits
The first limit covers housing alone. That means rent or the full mortgage payment. The second covers all debt together. It adds car loans, cards and more. The gap between them is for non-housing debt. That covers loans beyond your home.
Common mistakes to avoid
One slip is using net pay, not gross income. Another is leaving out a debt. People also forget taxes and insurance in housing. Each error skews the limits. Use full, honest figures throughout.
The limits of this tool
This calculator gives a general guide. Lenders may use slightly different ratios. It does not judge your credit or savings. It also ignores local costs. Use it as a starting point. Your lender sets the final terms.
Using the rule to plan
Compare your real payments to the caps. Trim where you sit above them. Aim to stay well under both. A buffer leaves room for surprises. Revisit it when your income changes. A raise lifts both caps a little.
A final tip
Run your income through before you borrow. The caps show what fits safely. Compare a few income levels to plan. A clear limit keeps your budget sound. Aim to sit well below the caps.