House Affordability Calculator
Find the maximum home price you can responsibly afford based on your income, existing debts, down payment and current mortgage rates.
How to use the House Affordability Calculator
- Enter your inputs into the House Affordability Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The 28/36 rule
Front-end DTI = Housing cost / Gross income ≤ 28% · · · Back-end DTI = (Housing + other debts) / Gross income ≤ 36%
Lenders cap mortgage qualification using debt-to-income ratios. The most common guidelines: total housing cost (PITI) should not exceed 28% of gross monthly income; total debt payments should not exceed 36–43%.
Worked example
A household earning $9,000/month gross with $500 in other debts can afford up to $2,520 in housing (28%) or $2,740 (36% back-end minus $500 of other debts). At 6.5% APR for 30 years with $50,000 down and typical taxes/insurance, that supports a home price of roughly $400,000–$430,000.
Frequently asked questions
What is included in PITI?
Principal, Interest, property Taxes and homeowners Insurance — the four components of total monthly housing cost. PMI is sometimes added for loans below 20% down.
Should I borrow the maximum the bank approves?
Usually no. Lender qualification represents what they'll allow, not what's comfortable. Most financial planners suggest staying 10–20% below the max to leave room for life changes.
How does my down payment affect affordability?
A larger down payment reduces the loan amount, which lowers the monthly payment directly. Crossing the 20% threshold also eliminates PMI on conventional loans.