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Free Home Affordability Calculator

Find out how much house you can afford based on your income, down payment, and monthly debts. This calculator uses the standard 28/36 debt-to-income rule that most mortgage lenders follow to determine your maximum home price.

Affordability Calculator

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Maximum Affordable Home Price
Max Loan Amount$0
Monthly Payment (PITI)$0
Principal & Interest$0
Property Taxes$0
Insurance$0
Front-End DTI (28% Rule)--
Back-End DTI (36% Rule)--

How to Use the Home Affordability Calculator

Enter your annual household income before taxes, your down payment amount, and your monthly debt payments. Enter the interest rate and loan term, plus annual property taxes and homeowner's insurance.

The calculator applies the 28/36 rule: your monthly housing costs should not exceed 28% of your gross monthly income (front-end ratio), and your total debt payments should not exceed 36% (back-end ratio).

Home Affordability Formula

Front-End Limit = Monthly Income x 0.28
Back-End Limit = (Monthly Income - Monthly Debts) x 0.36

Your maximum monthly payment is the lower of these two limits. The calculator then works backward using the standard amortization formula to determine the maximum loan amount.

Frequently Asked Questions

The 28/36 rule is a common guideline used by mortgage lenders. It states that your monthly housing costs should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36% of your gross monthly income.
A 20% down payment is ideal because it eliminates the need for private mortgage insurance (PMI). However, many conventional loans allow as little as 3-5% down, and FHA loans require only 3.5%.
Lenders count all recurring monthly debt payments including car loans, student loans, credit card minimum payments, personal loans, and alimony. Utilities, groceries, and insurance are not counted.
This calculator uses conservative 28/36 guidelines. Some lenders may approve loans with higher ratios, especially with excellent credit or a large down payment. However, staying within these limits helps ensure manageable housing costs.