Cost-to-Income Ratio Calculator
Cost-to-Income Ratio Calculator
| Item | Value |
|---|---|
| Gross Monthly Income | $6,500 |
| Housing Cost | $1,800 |
| Utilities | $250 |
| Total Housing Cost | $2,050 |
| Housing Ratio | 31.5% |
| Recommended Max (28%) | $1,820 |
| Remaining After Housing | $4,450 |
| Affordability | Over budget ✗ |
Cost vs Guideline vs Remaining
About the Cost-to-Income Ratio Calculator
The housing cost-to-income ratio is the share of your gross monthly income consumed by housing. The 28% rule — a benchmark used by lenders and financial planners — says housing should stay at or below 28% of gross income to leave room for other debts, savings, and lifestyle.
Beyond the 28% Rule
Lenders also apply the 36% total debt ratio, which includes car loans, student loans, and credit cards on top of housing. Keeping both ratios in check is the foundation of mortgage qualification and long-term financial health.
Frequently Asked Questions
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