Ratio calculator
Housing Ratio Calculator
What share of your income does your home actually take? This housing ratio calculator compares your monthly rent or EMI against your income, and shows where you sit against the healthy-affordability guideline.
- Monthly housing
- ₹25,000
- Rest of income
- ₹65,000
- Gross monthly income
- ₹90,000
Comfortable — housing is within the 28% front-end guideline, leaving room to save.
For illustration only. The guideline bands are general and depend on your city, income stability and other commitments; this is not financial advice.
How the housing ratio works
The housing ratio is simply your monthly housing cost as a percentage of your gross monthly income:
housing ratio = monthly housing cost ÷ gross income × 100
Include everything your home costs each month — rent, or an EMI plus maintenance, property tax and insurance — not just the headline figure.
The 28/36 rule
The widely-used benchmark is the 28/36 rule: keep housing under 28% of gross income (the front-end ratio), and all debt together — housing plus other EMIs — under 36% (the back-end ratio). Renters are often allowed up to about 30% including utilities. Push past these and saving and emergencies get squeezed — and lenders apply the same limits when they size a home loan.
A worked example
Paying ₹25,000 for a home on a ₹90,000 gross income is a housing ratio of about 28% — right at the guideline. Push housing to ₹40,000 on the same income and it jumps to 44%, well past the 36% mark, where other goals start to get squeezed.
Frequently asked questions
- What is the housing ratio?
- The housing ratio is the share of your gross monthly income that goes to housing — rent, or a home-loan EMI plus maintenance, property tax and insurance. Housing ratio = monthly housing cost ÷ gross monthly income × 100.
- What is a healthy housing ratio?
- The classic 28/36 rule keeps housing (the front-end ratio) under 28% of gross income and total debt (the back-end ratio, housing plus other EMIs) under 36%. Renters are often allowed up to about 30% including utilities. Above these levels, little is left for saving, other EMIs and emergencies, and lenders use the same limits when they assess a home loan.
- Should I use rent or EMI in the calculation?
- Use whichever you actually pay for your home. If you own with a loan, include the EMI plus recurring costs like maintenance, property tax and home insurance — not just the EMI — to get a true picture of what housing costs you each month.
- Gross income or take-home?
- The standard ratio uses gross (pre-tax) income, which is what lenders assess. If you want a stricter, more realistic view of affordability, run it against your take-home pay as well — the ratio will look higher.
- Is this ratio financial advice?
- No. It is a quick affordability check using the numbers you enter. The right level depends on your city, income stability and other commitments, so treat the guideline bands as context, not a rule.