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Home Affordability Calculator

Discover how much house you can truly afford based on your income, existing debts, and down payment using the 28/36 rule.

Your Financial Profile

Income & Debts
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$20K$500K
car, student loans, etc.
$
$0$5K
Loan Details
$
%
1%15%
30 yr
15 yr
Additional Costs
%
$
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Max Home Price (Conservative)
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28% front-end DTI
Max Home Price (Aggressive)
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36% back-end DTI
Max Monthly Payment
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Front-End DTI
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Total DTI
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Income Allocation

How to Use the Affordability Calculator

Enter your annual gross income (before taxes), your existing monthly debt payments (car loans, student loans, credit card minimums), your planned down payment, the current interest rate, and your estimated property tax rate and insurance costs. The calculator applies both the conservative 28% front-end rule and the 36% back-end DTI rule to show you a safe range of home prices.

The results show two figures: a conservative max price based on keeping your housing costs below 28% of gross monthly income, and an aggressive ceiling based on keeping total debt below 36%. Most buyers are best served by targeting somewhere between these two numbers.

The 28/36 Rule Explained

The 28/36 rule is the foundational guideline for mortgage affordability. The first number (28%) is the maximum percentage of your gross monthly income that should go toward housing — this is called your front-end debt-to-income ratio (DTI). The second number (36%) caps total debt payments including housing — this is the back-end DTI.

For example, with a $100,000 annual income ($8,333/month), your maximum housing payment under the 28% rule would be $2,333/month. Many lenders will approve loans up to 43–50% back-end DTI, but this leaves very little room for savings or unexpected expenses.

DTI Formula

Front-End DTI = (Monthly Housing Costs) / (Gross Monthly Income) × 100. Back-End DTI = (Housing + All Other Monthly Debts) / (Gross Monthly Income) × 100. A DTI below 36% is considered excellent, 37–43% is acceptable to most lenders, and above 43% may limit your loan options.

Tips for Improving Your Affordability

  • Pay down debts before applying — reducing your monthly obligations directly increases your buying power
  • Save a larger down payment — reduces your loan amount and may eliminate PMI
  • Improve your credit score — better scores unlock lower rates, increasing what you can afford
  • Consider a longer term — a 30-year vs. 15-year mortgage lowers monthly payments
  • Look at lower-cost areas — property tax rates vary widely and significantly affect affordability

Frequently Asked Questions

The 28/36 rule states that your housing costs should not exceed 28% of your gross monthly income (front-end DTI), and your total debt payments should not exceed 36% (back-end DTI). These are conservative guidelines; many lenders today allow up to 43–50% back-end DTI.
Monthly debts include: minimum credit card payments, car loan payments, student loan payments, personal loan payments, alimony, and child support. Do not include utilities, insurance, groceries, or other living expenses — only recurring debt obligations that appear on your credit report.
With a 10% down payment, a 6.75% rate, and no other debts, you'd need roughly $95,000–$100,000 in annual income to comfortably afford a $400,000 home using the 28% rule. With significant other debts, you'd need more income or a larger down payment.
Use the conservative estimate (28% front-end DTI) if you want a comfortable buffer for savings, emergencies, and lifestyle expenses. Use the aggressive estimate (36% back-end DTI) if you have stable income, minimal debt, and strong job security. Most financial planners recommend erring on the conservative side.