Home Affordability Calculator
Find out how much house you can afford based on the 28/36 debt-to-income rule. Enter your gross income, existing debts, and down payment to see your maximum home price, loan amount, and monthly payment.
Car, student loans, credit cards, etc.
Max Home Price
$326,331
Max Loan
$286,331
Down %
12.3%
How home affordability is calculated
Lenders use two debt-to-income (DTI) ratios to determine how much they'll lend. The front-end DTI (or housing ratio) limits your monthly housing costs to 28% of gross monthly income. The back-end DTIlimits all monthly debt payments to 36% of income (conventional loans) or 43% for FHA loans. The binding limit is whichever gives you the lower monthly payment.
Once the maximum monthly payment is determined, the calculator works backwards using the mortgage payment formula to find the maximum loan you qualify for, then adds your down payment to get the maximum home price.
What is the 28/36 rule?
The 28/36 rule is a widely used guideline: spend no more than 28% of gross monthly income on housing (mortgage, taxes, insurance) and no more than 36% on all debts combined. It's a rule of thumb, not a hard limit — lenders may approve higher DTIs for borrowers with strong credit or large down payments.
Does this include property taxes and insurance?
The maximum monthly payment figure used here represents the total allowed housing payment, which lenders typically calculate as PITI: Principal, Interest, Taxes, and Insurance. This calculator uses the payment as a cap for your mortgage P&I; be sure to account for your actual property tax and insurance costs when estimating what you can afford.
How much down payment do I need?
A 20% down payment avoids private mortgage insurance (PMI), which can add 0.5–1.5% of the loan amount per year. FHA loans allow as little as 3.5% down with a credit score of 580+. Conventional loans can go as low as 3% for first-time buyers. A larger down payment reduces your loan, monthly payment, and total interest paid.
