Mortgage Affordability Calculator
Find out how much house you can afford from your income, existing debts and the cash you have for a down payment. The calculator applies the lender 28/36 rule to set a safe maximum monthly payment, then works back to a loan amount and an estimated maximum home price.
How to estimate what you can afford
- Enter your gross annual income and your total existing monthly debt payments.
- Add the down payment you have saved, plus the interest rate and loan term you expect.
- Read off the maximum home price, maximum monthly payment and maximum loan amount.
Examples
100k income, no debts, 20% down, 30-year at 6%
Income 100,000, monthly debts 0, down payment 40,000, rate 6%, term 30 years
Max payment about 2,333/mo, max loan about 389,180, max home price about 429,180
Same income with 1,000 a month of debt
Income 100,000, monthly debts 1,000, down payment 40,000, rate 6%, term 30 years
Back-end DTI binds: max payment drops to 2,000/mo, lowering the loan and home price
Frequently asked questions
What is the 28/36 rule?
It is a common lender guideline. The 28 means your housing payment should stay at or below 28 percent of your gross monthly income. The 36 means all of your debt payments combined, including the new mortgage, should stay at or below 36 percent. We use the lower of the two limits.
What is debt-to-income (DTI)?
DTI is the share of your gross monthly income that goes to debt payments. Front-end DTI counts only housing; back-end DTI counts every monthly debt such as car loans, student loans and credit cards. Lenders use both to decide how much they will lend.
What else do lenders consider?
Beyond DTI, lenders look at your credit score, employment and income history, cash reserves, the loan type and the property itself. Two borrowers with the same income can qualify for very different amounts, so treat this result as a starting point.
How does the down payment change what I can afford?
A larger down payment adds directly to the home price you can reach, because your maximum loan stays the same and the extra cash sits on top. It can also lower your rate and help you avoid private mortgage insurance.
Does this include taxes, insurance and HOA dues?
No. The maximum payment is principal and interest only. Property taxes, homeowners insurance, PMI and HOA dues all reduce the home price you can truly afford, so build in room for them.
Are these numbers a guarantee of approval?
No. They are guidelines to help you plan and shop. Lenders vary in how they apply DTI limits and what they accept, so confirm the figures with a lender before you make an offer.
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