Mortgage Required Income Calculator

Find the income needed to qualify for a mortgage payment using the 28% front-end and 36% back-end debt-to-income limits.

Independently verified for accuracy

Calculator by Toolsloft ↗
Required annual income
$85,714.29
Required monthly income
$7,142.86
By front-end rule
$7,142.86
By back-end rule
$6,944.44

This calculator works backward from a mortgage payment to the income a lender wants to see. It applies the front-end and back-end debt-to-income limits and reports the higher of the two, since a borrower has to clear both tests to qualify.

How this is calculated

The front-end income is the housing payment divided by the front-end DTI limit (commonly 28%). The back-end income is the payment plus other monthly debts divided by the back-end limit (commonly 36%). Required income is the larger of the two, because both ratios must be satisfied.

How to use

  1. Enter the total monthly housing payment you are targeting.
  2. Enter your other monthly debt payments.
  3. Adjust the front-end and back-end DTI limits if needed, then read the required income.

Examples

  • $2,000 payment, $500 debts: needs $85,714/yr
  • $1,500 payment, no other debt: needs $64,286/yr

FAQ

What are the 28/36 rules?
The front-end rule says housing costs should stay within about 28% of gross income. The back-end rule says total debt payments should stay within about 36%. Lenders vary, so the limits are adjustable here.
Why use the higher of the two incomes?
You must pass both the front-end and back-end tests. The income that satisfies the stricter test also satisfies the other, so the required income is the larger figure.
Should the payment include taxes and insurance?
Yes. Lenders measure the full housing payment (principal, interest, taxes, insurance, and any HOA), so enter the complete monthly figure for an accurate result.

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