Mortgage Affordability Calculator

Find out how much house you can afford based on your income, debts, and down payment. Uses the standard 28/36 rule and lender debt-to-income guidelines.

Part of our Finance Calculators collection.

Mortgage Affordability Calculator

Free online calculator

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Combined household income before taxes

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Car loans, student loans, credit cards (minimum payments)

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How to Use This Calculator

  1. 1

    Enter your annual household gross income.

  2. 2

    Enter all existing monthly debt payments (car, student loans, credit card minimums).

  3. 3

    Enter your available down payment.

  4. 4

    Fill in the current interest rate and property tax estimate.

  5. 5

    See the maximum home price you qualify for under standard lender guidelines.

How Affordability is Calculated

Lenders use two key ratios:

28% Rule (front-end DTI):
Max housing payment = Gross monthly income × 0.28

36% Rule (back-end DTI):
Max total debt = Gross monthly income × 0.36
Max housing payment = (Gross monthly income × 0.36) − existing monthly debts

Actual limit = lower of the two calculations
Max loan = solve mortgage formula for principal given payment

Example Calculation

Example: $90k income, $400/month debts, $60k down

Inputs

annualIncome: 90000monthlyDebts: 400downPayment: 60000interestRate: 6.8loanTermYears: 30propertyTaxAnnual: 4000homeInsuranceAnnual: 1200

Result

Affordable home price: ~$380,000

Monthly income: $7,500. 28% rule: $2,100 max housing. 36% rule: $2,700 − $400 debts = $2,300 housing. Using $2,100 limit at 6.8% for 30 years ≈ $320k loan + $60k down = ~$380k home.

Frequently Asked Questions

What is the 28/36 rule?
Lenders traditionally limit housing costs to 28% of gross monthly income (front-end ratio) and total debt payments to 36% of gross income (back-end ratio). These are guidelines — some lenders go higher.
Does this include PMI?
This calculator uses simplified ratios. If your down payment is under 20%, add PMI (typically 0.5–1% of loan value annually) to your monthly housing cost — it may reduce the affordable home price slightly.
Should I borrow the maximum I qualify for?
Rarely. Qualifying for a loan and comfortably affording the payments are different things. Consider job stability, emergency funds, maintenance costs (1–2% of home value annually), and lifestyle priorities before buying at your maximum.

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Disclaimer: This calculator provides estimates based on standard lending guidelines. Actual loan approval depends on credit score, employment history, and lender-specific criteria. Consult a mortgage lender for a formal pre-approval.