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The 28/36 rule calculator is a **tool that helps you to check the health of your finances**. The 28/36 rule informs what is a safe amount of debt for a person or a household.

According to this rule, a household should spend a maximum of 28% of its gross monthly income on total housing expenses and **no more than 36% on total debt service**, including housing and other debt such as car loans and credit cards.

- No more than 28 percent of your gross monthly income should go to monthly housing costs. ...
- No more than 36 percent of your gross monthly income should be spent on total debt and loan payments.

The 28% rule states that you should spend 28% or less of your monthly gross income on your mortgage payment (e.g. principal, interest, taxes and insurance). To determine how much you can afford using this rule, **multiply your monthly gross income by 28%**.

Calculating gross monthly income if you're paid hourly

First, to find your yearly pay, multiply your hourly wage by the number of hours you work each week and then multiply the total by 52. Now that you know your annual gross income, **divide it by 12** to find the monthly amount.

Applying the 28/36 rule as a guide, you'd need a gross monthly income of at least $4,789 because $1,341 (your total housing expenses) is 28 percent of $4,789. That means if you make approximately **$57,471 per year**, you would meet the front end ratio.

- Look up the amount listed on the paycheck stub before anything is subtracted. ...
- Multiply this by 2.17 to find your gross monthly income if you are paid every two weeks. ...
- Multiply your base pay by 4.35 to calculate your gross monthly income if you are paid weekly.

Now we can see that our fraction is 77.777777777778/100, which means that 28/36 as a percentage is **77.7778%**.

When attempting to determine how much mortgage you can afford, a general guideline is to multiply your income by at least 2.5 or 3 to get an idea of the maximum housing price you can afford. If you earn approximately $100,000, the maximum price you would be able to afford would be **roughly $300,000**.

What is this? Now we can see that our fraction is 80/100, which means that 28/35 as a percentage is **80%**.

Bankrate.com and other financial websites recommend keeping your debt-to-income ratio **below 36 percent**. That means that your monthly debt should consume less than 36 percent of your monthly income.

What is the 50-20-30 rule? The 50-20-30 rule is a money management technique that divides your paycheck into three categories: **50% for the essentials, 20% for savings and 30% for everything else**.

Some experts suggest that the total amount you pay towards your mortgage should **not exceed 28% of your gross** (rather than net) income. And you should make sure that you don't go over 36% of gross income for the total amount you spend on all borrowing, including mortgage.

Most experts recommend that you shouldn't spend **more than 30 percent of your gross monthly income on rent**. Your total living expenses (rent, utilities, groceries and other essentials) should be less than 50 percent of your net monthly household income.

So if you earn $70,000 a year, you should be able to spend **at least $1,692 a month** — and up to $2,391 a month — in the form of either rent or mortgage payments.

However, the general rule is **28% of your income** should be funnelled into your mortgage. Anything above that amount, the average earner might find their financial situation a little uncomfortable. However, this is just a general rule, and your finances may allow for a bigger or smaller percentage.

I make $90,000 a year. How much house can I afford? You can afford **a $306,000 house**.

The golden rule in determining how much home you can afford is that your **monthly mortgage payment should not exceed 28% of your gross monthly income** (your income before taxes are taken out). For example, if you and your spouse have a combined annual income of $80,000, your mortgage payment should not exceed $1,866.

What income is needed for a 300k mortgage? + A $300k mortgage with a 4.5% interest rate over 30 years and a $10k down-payment will require an **annual income of $74,581** to qualify for the loan. You can calculate for even more variations in these parameters with our Mortgage Required Income Calculator.

Now we can see that our fraction is 80.555555555556/100, which means that 29/36 as a percentage is **80.5556%**.

The equation for figuring what a company's gross income or gross profit: **Sales revenue - costs of goods sold = gross income**. Sales revenue is the total amount of money a company generates from selling its goods or services in its main business with no other factors or deductions taken into account.

For individuals, gross income is **all the money you earn before taxes and other deductions are subtracted**. Your earned income can come in many forms: salary, bonuses, tips, hourly wages, rental income, dividends from stocks and bonds, and savings account interest.

Figure out the take-home pay by subtracting all the calculated deductions from the gross pay, or using this formula: **Net pay = Gross pay - Deductions** (FICA tax; federal, state and local taxes; and health insurance premiums).