But let’s say after taxes, insurance and other deductions, your take-home pay is $6,000. Another way to calculate, though, is no more than 45% of your net pay-or after-tax dollars-should go to your total monthly debt.Įxample: With a $7,000 monthly gross income, 35% would be $2,450 for all your debt. Using the 35/45 method, no more than 35% of your gross household income should go to all your debt, including your mortgage payment. Along with your $1,960 mortgage payment, you’re left with $2,520 to cover other needs. This includes credit cards, car loans, utility payments and any other debt you might have.Įxample: With a $7,000 gross income, 36% would be $2,520. The 28/36 rule is an addendum to the 28% rule: 28% of your income will go to your mortgage payment and 36% to all your other household debt. So with a $7,000 gross income, your monthly home payment should be about $1,960 using the 28% model.

Multiply that by 28% and that’s about what you can expect to spend on your monthly mortgage payment every month. Gross income is what you make before taxes are taken out.Įxample: Let’s say you earn $7,000 every month in gross household income. The 28% rule says that you shouldn’t pay more than 28% of your monthly gross income on mortgage payments-including taxes and homeowner’s insurance.

There are a few different more popular models for determining how much of your income should go to your mortgage. What Percentage Of Your Income Should Go to Your Mortgage?

Budget percentages for household