FINANCIAL · HOME AFFORDABILITY

Home Affordability Calculator

Find out how much house you can afford using the 28/36 DTI rule — enter your income, debts, down payment, rate, and term.

Income & Existing Debts

Before taxes. Include all sources.

Auto, student loans, CC minimums, etc.

Mortgage Details
DTI Limits (default 28/36)

Housing costs ÷ gross income. Lenders typically use 28%.

All debts ÷ gross income. Lenders typically use 36–43%.

02 Your Maximum Home Price
Maximum home price
$342,987.31
Using the front-end DTI limit (28%)
Loan amount$282,987.06
Down payment$60,000.00
03 Estimated Monthly Payment
Est. total monthly payment (P&I + T&I)
$2,240.00
Principal & interest$1,882.72
Est. taxes & insurance (1.25%/yr)$357.28
04 DTI Analysis
Gross monthly income$8,000.00
Existing monthly debts$500.00
Binding limitFront-end 28%

Taxes & insurance estimated at 1.25% of home price per year — a rule of thumb. Your actual T&I depends on your location and insurer. PMI not included. Actual loan qualification depends on your credit score, lender guidelines, and other factors.

About This Calculator

Use the 28/36 DTI rule to find the maximum home price you can comfortably afford based on your gross income, existing debts, down payment, interest rate, and loan term. Ratios are fully adjustable to match your lender's qualifying criteria.

How It Works

Enter your gross monthly income and existing debt payments (auto loans, student loans, credit card minimums). Add your down payment, expected interest rate, and loan term. The calculator applies the standard 28% front-end limit (housing costs ÷ income) and 36% back-end limit (all debts ÷ income) — whichever is more restrictive sets your maximum affordable home price. You can override the ratios to match FHA or conventional jumbo guidelines.

The Formula

PITI_max = min(income × FER, income × BER − debts) Loan = PV(PITI_max − TI, r, n)

PITI
Principal, interest, taxes, and insurance — the full monthly housing cost
FER
Front-end ratio (default 28%) — housing cost as a share of gross income
BER
Back-end ratio (default 36%) — all debts as a share of gross income
TI
Estimated monthly taxes and insurance (1.25% of home price ÷ 12)
r
Monthly interest rate = annual rate ÷ 1200
n
Total monthly payments = term in years × 12

Frequently Asked Questions

What is the 28/36 rule?
The 28/36 rule is a guideline used by most conventional mortgage lenders. It says your housing costs (principal, interest, taxes, and insurance — PITI) should not exceed 28% of your gross monthly income, and your total monthly debt obligations should not exceed 36% of your gross income. The more restrictive limit determines how large a loan you qualify for.
Can I use a higher DTI ratio?
Yes. FHA loans allow back-end DTI up to 43–50% in some cases, and some conventional lenders go to 45–50% for well-qualified borrowers. Use the front-end/back-end sliders to match your lender's specific guidelines. Keep in mind that a higher DTI ratio means a tighter monthly budget.
Does the calculator include PMI?
No. Private mortgage insurance (PMI) applies when your down payment is less than 20% and varies by lender and loan. Add your estimated monthly PMI to the "Existing Monthly Debts" field to factor it in as a rough approximation.
Why is the tax and insurance estimate only 1.25%?
The 1.25%-per-year rule of thumb is a national average. Property taxes vary widely by state (New Jersey averages over 2%; Hawaii under 0.3%) and insurance depends on your location, home age, and coverage. Use the result as a directional estimate and get actual T&I quotes for the specific home you're considering.