Home Affordability Calculator
See the home price your income can support.
Car loans, credit cards, student loans, etc.
Estimated property taxes plus homeowner's insurance.
Max loan amount
- Max monthly payment (P&I)
- $1,790.00
Estimate using the 28/36 debt-to-income rule. Excludes down payment, taxes, and insurance from the loan figure.
How the home affordability calculator works
This tool explores one mortgage-size scenario using the 28/36 rule of thumb, applied to gross monthly income. It is not a lending standard or preapproval. The CFPB notes that different loan products and lenders use different debt-to-income limits and that an ability-to-repay assessment also considers assets, employment, credit history, and expenses.
Two caps run at the same time. The front-end ratio limits housing cost to 28 percent of gross income. The back-end ratio limits all debt payments combined to 36 percent. Housing cost here means PITI: principal and interest plus monthly taxes and insurance. The calculator solves each cap for the principal-and-interest (P&I) portion:
- Front-end P&I =
0.28 × gross − taxes/insurance - Back-end P&I =
0.36 × gross − other debts − taxes/insurance
Your max monthly P&I is the smaller of the two (never below zero). That payment is then run backward through the standard amortization formula to find the loan it supports. With monthly rate r and term n months, the affordable loan is Loan = M × (1 − (1 + r)^−n) / r, where M is the max P&I. When the rate is zero, the loan is simply M × n.
Worked example
Inputs: gross income 90,000 per year (7,500 per month), other monthly debts 400, monthly taxes and insurance 350, rate 6.5 percent, term 30 years (360 months).
| Step | Calculation | Result |
|---|---|---|
| Front-end P&I | 0.28 × 7,500 − 350 | 1,750.00 |
| Back-end P&I | 0.36 × 7,500 − 400 − 350 | 1,950.00 |
| Max monthly P&I | smaller of the two | 1,750.00 |
Monthly rate r |
6.5 ÷ 100 ÷ 12 | 0.0054167 |
| Max loan | 1,750 × (1 − 1.0054167^−360) / 0.0054167 | 276,868.93 |
The front-end cap binds here, so the affordable P&I is 1,750. At 6.5 percent over 360 months, that payment supports a loan of about 276,869. Add your down payment to estimate the purchase price.
How to use it
- Enter gross monthly income, not take-home pay. Divide annual salary by 12 if needed.
- Include every recurring debt in the debts field: car loans, student loans, and minimum credit card payments. Leave out groceries, utilities, and other variable spending.
- Estimate taxes and insurance from the relevant local tax authority and insurer. National percentage shortcuts can be materially wrong for a specific property.
- Test a rate slightly above your quote to build in a cushion.
- Treat the output as a loan ceiling, then add your down payment to get the home price.
Limitations
This is a budgeting scenario, not a lending decision or financial advice. It does not account for mortgage insurance, HOA dues, utilities, maintenance, repairs, closing costs, down-payment requirements, credit history, assets, reserves, changing rates, or program-specific underwriting. A lender may approve more or less than this model, and approval does not establish that a payment fits your budget. Compare the result with your actual spending and savings goals, then use written Loan Estimates for real offers.
Sources and scope
- Jurisdiction
- United States mortgage-planning context
- Data current to
- July 30, 2026
- Last updated
- What is a debt-to-income ratio? — Consumer Financial Protection Bureau
- What is the ability-to-repay rule? — Consumer Financial Protection Bureau
- Figure out how much you want to spend — Consumer Financial Protection Bureau
Frequently asked questions
What income do I enter, gross or net?
Enter gross monthly income, before taxes and deductions, because this calculator defines both entered ratios against gross income. That does not mean every lender will accept the same income amount or use these ratios. If you only know annual gross income, divide it by 12.
Why does my monthly debt lower the home price I can afford?
Within this model, the back-end setting caps housing plus entered debt payments as a percentage of gross income, so more existing debt leaves less modeled room for housing. Actual underwriting considers the debt type, credit, assets, income documentation, and program rules; this result does not predict approval.
Does this include my down payment?
No. The result is the maximum loan amount, not the home price. Add your down payment to the loan to estimate the purchase price you can support. For example, a 250,000 loan plus a 50,000 down payment points to roughly a 300,000 home.
What rate should I use if I have not been quoted one yet?
Use a current market rate for the loan type and term you expect, and check a rate sheet or lender quote for the day. A higher rate shrinks the loan a given payment can support, so it is worth testing a rate half a point above and below your estimate to see the range.
Can I change the 28 and 36 percent limits?
Yes. The 28/36 values are budgeting defaults, not universal underwriting limits. Different lenders and loan programs use different debt-to-income criteria and consider other information. If you have documented limits for a specific program, enter them to model that scenario.