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Home Affordability Calculator

Find out how much house you can afford based on your income, debts, and down payment. Based on the 28/36 DTI rule used by mortgage lenders.

Your Finances

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Include car loans, student loans, credit card minimums

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Affordability Estimate

Maximum Home Price

$392,243

28% front-end DTI · 6.5% APR · 30yr

Max Monthly Payment$2,100/mo
Down Payment$60,000
Max Loan Amount$332,243
Recommended Price (25%)$309,182
Total DTI with Mortgage32.0%
● Recommended range● Maximum stretch

Estimates P&I only. Your actual payment will include property taxes, homeowner's insurance, and possibly PMI. Approval and final rate depend on credit score, lender policies, and market conditions. Consult a licensed mortgage professional.

How This Home Affordability Calculator Works

This calculator uses the lender guidelines known as the 28/36 rule. Your maximum housing payment (principal + interest) cannot exceed 28% of your gross monthly income (front-end DTI). Your total monthly debt payments — including the new mortgage — cannot exceed 36% (back-end DTI). Your result is the lower of the two limits.

To find the maximum loan amount from a given monthly payment, we use the inverse of the standard amortization formula:

Loan = Payment × [1 – (1+r)^–n] / r

Where r = monthly rate (APR ÷ 12) and n = total months. Add your down payment to the loan amount to get the maximum home price.

Tips to Afford More Home

Increase your down payment. A larger down payment reduces the loan amount, potentially eliminates PMI (if you reach 20%), and lowers your monthly payment. Even an extra $10,000 down can add $30,000–$50,000 to your affordable home price.

Pay down existing debts first. Reducing your monthly debt obligations directly increases the amount available for a mortgage. Paying off a $350/month car loan can add $50,000–$70,000 to your affordable home price at current rates.

Improve your credit score. A score jump from 680 to 740 can reduce your mortgage rate by 0.25%–0.75%. At a $400,000 loan, a 0.5% rate reduction saves over $60,000 in interest over 30 years — and qualifies you for a larger loan.

Consider a 15-year mortgage. While the payment is higher, 15-year rates are typically 0.5%–0.75% lower than 30-year rates, which can meaningfully increase your purchasing power if you can manage the higher monthly payment.

Home Affordability Calculator — FAQ

How much house can I afford on my income?
A common rule of thumb is that your monthly housing payment (principal, interest, taxes, and insurance) should not exceed 28% of your gross monthly income. With a $90,000 annual income ($7,500/month), that means a maximum housing payment of about $2,100/month.
What is the 28/36 rule for mortgages?
Lenders use the 28/36 rule: your housing payment should not exceed 28% of gross monthly income (front-end ratio), and your total monthly debt payments should not exceed 36% (back-end ratio or DTI). If you have existing debts like car loans or student loans, they reduce the amount available for a housing payment.
What is a debt-to-income (DTI) ratio?
Your debt-to-income ratio is the percentage of your gross monthly income that goes toward debt payments. Most conventional mortgage lenders require a total DTI below 43%. Some loan programs (like FHA) allow up to 50%. A lower DTI means you qualify for a larger loan and typically get a better interest rate.
How much down payment do I need to buy a house?
Conventional loans require as little as 3% down. However, a 20% down payment eliminates Private Mortgage Insurance (PMI), which typically costs 0.5%–1.5% of the loan per year. FHA loans allow 3.5% down with a credit score of 580+. VA loans and USDA loans offer 0% down to eligible borrowers.
What additional costs should I budget for when buying a home?
Beyond the mortgage payment, budget for: property taxes (1%–2% of home value annually), homeowner's insurance ($1,000–$3,000/year), HOA fees if applicable, closing costs (2%–5% of purchase price), and maintenance/repairs (budget 1% of home value per year). These can add $500–$1,500/month to your true housing cost.