Home Affordability Calculator
Find out the home price range you can realistically afford based on your income, debts, and down payment — using the lender-standard 28/36 rule plus a stretch tier you can adjust.
28% of your income on housing — plenty of room in your budget.
Includes PMI
Lender's classic 36% back-end guideline including your other debts.
Includes PMI
43% back-end DTI — the upper end most lenders will approve.
Includes PMI
Affordability Spectrum
Financial planners recommend staying near the Comfortable tier. Lenders will often approve up to the Stretch tier, but it leaves less room for emergencies, retirement savings, or rate changes.
Monthly Breakdown at Standard Tier
What the $3,200/month payment buys for the $439,451 home.
- Principal & Interest$2,398
- Property Tax$439
- Home Insurance$125
- PMI$237
Gross Monthly Income
$10,000
Before taxes
Current Debt-to-Income
4.00%
$400 of debts only
Remaining Budget for Housing
$3,200
At standard 36% DTI
How to use this calculator
Start by entering your annual gross income (total household income before taxes) and your other monthly debts — car payments, student loans, credit cards, etc. Don't include the new mortgage; we'll calculate that.
Add your down payment and the interest rate you expect. The property tax rate, insurance, and PMI fields are pre-filled with national averages — override them if you know your local numbers.
The calculator returns three home price tiers:
- Comfortable — based on the conservative 28% front-end DTI: housing-only, ignoring other debts. Lots of breathing room.
- Standard — the classic 36% back-end DTI including your debts. What most lenders consider a healthy target.
- Stretch — the upper DTI most lenders will approve (default 43%, the QM-rule ceiling). Adjust the slider to model what your lender will actually allow.
How it works
Lenders and financial planners use the 28/36 rule to gauge how much house you can afford. It has two parts:
28% front-end ratio: your total monthly housing payment — PITI plus HOA — should be no more than 28% of your gross monthly income. This is the “can you afford the house itself” check.
36% back-end ratio: your total monthly debt payments — housing plus car, student loans, credit cards, everything — should be no more than 36% of your gross monthly income. This is the “can you afford everything at once” check.
Most lenders will actually approve up to about 43% DTI (the Qualified Mortgage rule limit), and some go higher for FHA or VA loans. But being approved doesn't mean comfortable. Financial planners consistently recommend staying at or under 36% — higher levels leave little room for car repairs, medical bills, emergencies, or rate increases.
To turn the monthly budget into a home price, the calculator solves backwards: budget minus property tax minus insurance minus PMI equals your available principal-and-interest payment, which, discounted back across your term at your rate, gives the maximum loan amount. Add your down payment and you get the maximum home price.