Front-End Ratio Calculator (USA)
Determine your housing affordability based on standard USA lending guidelines (28/36 Rule).
Monthly Income (Pre-Tax)
Your salary before taxes & deductions.
Housing Expenses
Include if applicable.
Your Front-End DTI Ratio
0%
—
Monthly Breakdown
| Total Housing Costs | $0.00 |
|---|---|
| Gross Monthly Income | $0.00 |
| Standard Limit (28%) | $0.00 |
| Difference | $0.00 |
What is a Front-End Ratio?
The Front-End Ratio, also known as the housing ratio, is a percentage used by lenders in the USA to determine your ability to repay a mortgage. It compares your expected monthly housing expenses to your gross (pre-tax) monthly income.
The 28/36 Rule Explained
Most financial institutions in the United States adhere to the 28/36 rule as a guideline for approving mortgages:
- 28% (Front-End): Your housing expenses (PITI – Principal, Interest, Taxes, Insurance) should not exceed 28% of your gross monthly income.
- 36% (Back-End): Your total debt payments (housing + student loans, car loans, credit cards) should not exceed 36% of your gross monthly income. This tool focuses specifically on the Front-End (28%) calculation.
How to Improve Your Ratio
If your ratio is above 28%, consider these steps to improve your eligibility:
- Look for a lower interest rate to reduce monthly principal and interest.
- Increase your down payment to borrow less.
- Choose a property with lower property taxes or HOA fees.
Disclaimer: This calculator provides estimates for educational purposes only. Actual loan approval depends on credit score, employment history, and other lender-specific criteria.
