Home Affordability Calculator
Find out how much house you can afford based on your income, debts, and down payment. This calculator uses the standard 28/36 DTI rules and includes property taxes and insurance in the calculation.
Your Financial Details
Car payments, student loans, credit cards, etc.
Annual rate as % of home value
Maximum Home Price You Can Afford
$353,000
Based on the 28% DTI rule
Estimated Monthly Payment (PITI)
Debt-to-Income Analysis
Guideline: 28% max
Guideline: 36% max
Monthly Income: $8,333 | Max Housing (28% rule): $2,333 | Max Housing (36% rule): $2,500
Home Price
$353,000
Down Payment
$60,000
Loan Amount
$293,000
Down Payment %
17.0%
How Home Affordability Is Calculated
Lenders determine how much you can borrow using debt-to-income (DTI) ratios. The two most common guidelines are the 28% rule and the 36% rule, collectively known as the 28/36 rule.
The front-end ratio (28%) looks at housing costs only: your mortgage payment including principal, interest, property taxes, and insurance (PITI). This should not exceed 28% of your gross monthly income.
The back-end ratio (36%) adds all other monthly debt obligations to your housing costs. The total should not exceed 36% of gross monthly income. If you have significant other debts, the 36% rule may be more restrictive than the 28% rule.
This calculator uses the more restrictive of the two rules to determine your maximum affordable home price. It then shows you the estimated monthly payment breakdown so you can see exactly where your money goes.
Frequently Asked Questions
What is the 28/36 rule for mortgage affordability?
The 28/36 rule is a lending guideline that says your housing costs should not exceed 28% of your gross monthly income (front-end ratio), and your total debt payments should not exceed 36% of gross monthly income (back-end ratio). Lenders use these ratios to determine how much you can safely borrow.
What counts as monthly debt in the DTI calculation?
Monthly debts include car payments, student loan payments, minimum credit card payments, personal loans, child support, and any other recurring debt obligations. It does not include utilities, groceries, subscriptions, or other living expenses.
How much should I put down on a house?
While 20% down avoids PMI and gets better rates, many buyers put down 3-10%. FHA loans require as little as 3.5% down. A larger down payment means a smaller loan, lower monthly payments, and less total interest. However, putting too much down can leave you without emergency savings.
Can I afford more house than the calculator shows?
Some lenders will approve loans with DTI ratios up to 43% or even 50% for qualified borrowers. However, the 28/36 guideline represents a comfortable level of debt that leaves room for savings, emergencies, and quality of life. Stretching beyond these limits increases financial stress and foreclosure risk.