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How to use
- Enter Gross monthly income.
- Enter Target ratio %.
- Calculate, then review what is included in the definition before making a financial decision.
How it is calculated
Target housing payment = gross income × target ratio ÷ 100
Example
Gross income of 12,000 with a 30% target gives a monthly housing budget of 3,600 and leaves 8,400.
Important notes
This is not a loan approval or home price. It is a monthly payment budget that may later be translated into financing scenarios.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Target payment | 12000 × 30 ÷ 100 | 3,600 |
| Remaining | 12000 − 3600 | 8,400 |
Frequently asked questions
Should the target always be 30%?
No. Choose a ratio that fits your budget and obligations; a common benchmark is not a mandatory rule.
Is this a loan approval or credit decision?
No. This is a numerical calculator only; lenders may use different income, debt, appraisal and fee policies.
Should I use gross or net income?
Use the income type named by the field. Do not substitute net for gross because it changes the denominator and result.