Example annual income
$100,000
= $8,333 gross monthly income
28%
Front-End Ratio
Max housing costs (P&I + taxes + insurance + HOA)
$2,333 / mo
36%
Back-End Ratio
Max total debt including housing + car, student loans, cards
$3,000 / mo
📊 Worked Example — $100K Salary
Gross monthly income
$8,333
28% housing limit
$2,333 / mo
Existing monthly debts (car + student loans)
$400 / mo
36% total debt limit
$3,000 / mo
✅ Max housing payment (36% minus debts)
$2,600 / mo
🏠 Estimated home price (10% down, 6.75% rate)
~$375,000
Pro tip: Stay under 28% for housing even if 36% allows more — it leaves room for maintenance, emergencies, and lifestyle costs. Use our free calculator for your exact numbers.