Affordability Calculator
Find out how much house you can afford
How much house can you actually afford? Enter your income, debts, and down payment to get a realistic home price based on the 28/36 rule used by lenders. See the maximum mortgage payment, loan amount, and home price you qualify for.
Quick example: With a $90,000 annual income, $500/month in debts, and a 20% down payment, you can afford a home up to approximately $385,000. Your maximum monthly mortgage payment would be $2,100 (28% of gross monthly income).
You Can Afford a Home Up To
Monthly Payment Breakdown
Payment Components
Debt-to-Income Ratios (28/36 Rule)
Esta calculadora fornece estimativas apenas para fins informativos. Os resultados reais podem variar. Consulte um consultor financeiro para aconselhamento personalizado.
Home Affordability Calculator
How to Use This Calculator
- Enter your gross annual income — Your total household income before taxes. Include all earners on the mortgage application.
- Enter monthly debts — Include car payments, student loans, minimum credit card payments, and any other recurring obligations. Do not include rent (it will be replaced by the mortgage).
- Enter your down payment — Either a dollar amount or percentage. A larger down payment increases the home price you can afford.
- Review interest rate and loan term — Adjust to match current market rates. In early 2026, 30-year fixed rates are approximately 6.5–7%.
The 28/36 Rule Explained
Lenders use the 28/36 rule to determine how much mortgage you can handle:
Front-end ratio (28%): Your total housing payment (principal, interest, taxes, insurance — PITI) should not exceed 28% of your gross monthly income.
Back-end ratio (36%): Your total debt payments (housing + all other debts) should not exceed 36% of your gross monthly income.
Maximum housing payment = MIN(Gross Monthly Income × 0.28, Gross Monthly Income × 0.36 − Monthly Debts)
Example: $90,000 income = $7,500/month gross. Front-end: $7,500 × 0.28 = $2,100. Back-end: $7,500 × 0.36 − $500 = $2,200. The binding constraint is $2,100 (the front-end ratio).
Common Scenarios
| Annual Income | Monthly Debts | Down Payment | Max Home Price* | Max Monthly Payment |
|---|---|---|---|---|
| $60,000 | $200 | 10% | $225,000 | $1,400 |
| $75,000 | $400 | 15% | $305,000 | $1,750 |
| $90,000 | $500 | 20% | $385,000 | $2,100 |
| $120,000 | $700 | 20% | $515,000 | $2,800 |
| $150,000 | $1,000 | 20% | $635,000 | $3,500 |
*Estimated at 6.75% interest, 30-year fixed, including taxes and insurance at ~1.5% of home value annually.
Pro Tips
- The 28/36 rule is a ceiling, not a target. Just because you qualify for a $500,000 mortgage does not mean you should take one. Many financial advisors recommend keeping housing costs under 25% of take-home pay for a comfortable budget.
- Pay off debts before house hunting. Reducing your monthly debts directly increases the home price you can afford. Paying off a $300/month car loan could add $50,000 to your buying power.
- Property taxes vary dramatically. A $400,000 home in New Jersey costs ~$8,800/year in property tax (2.2%), while the same home in Hawaii costs ~$1,120 (0.28%). This significantly affects affordability.
- Pre-approval is not the same as affordability. Lenders may approve you for more than you can comfortably pay. Run your own budget numbers and stress-test them: what if rates rise, you lose income, or a major repair comes up?
- Factor in maintenance costs. Budget 1–2% of the home value per year for repairs and maintenance ($4,000–$8,000/year on a $400,000 home).
Sources
- 28/36 qualifying ratios: Fannie Mae Selling Guide, Section B3-6-02
- Mortgage rates: Freddie Mac Primary Mortgage Market Survey, 2026
- Property tax rates: Tax Foundation state-by-state data, 2026
Related Calculators
- Mortgage Calculator — Calculate monthly payments on a specific loan amount
- Down Payment Calculator — Plan your savings for a home purchase
- Rent vs Buy Calculator — See if buying makes financial sense
- Tax Bracket Calculator — Understand your take-home pay for budgeting
Perguntas Frequentes
Using the 28/36 rule with no other debts, 20% down, and a 6.75% interest rate, a $75,000 salary supports approximately a $300,000 home with a monthly payment around $1,750 (including taxes and insurance). With $500/month in existing debt payments, the maximum drops to roughly $225,000. These are guidelines; actual approval depends on credit score, assets, and lender criteria.
The 28/36 rule is a guideline used by most lenders. The front-end ratio (28%) says your total housing payment (mortgage, taxes, insurance, PMI) should not exceed 28% of your gross monthly income. The back-end ratio (36%) says your total monthly debt (housing plus car loans, student loans, credit cards) should not exceed 36% of gross monthly income. Some lenders allow up to 43% for the back-end ratio.
Interest rates have a major impact on affordability. For every 1% increase in rates, your buying power drops by approximately 10%. For example, at 5.75% you might afford a $380,000 home, but at 6.75% that drops to about $340,000, and at 7.75% it falls to roughly $305,000 — all with the same income and down payment.
Lenders typically require at least 2 years of consistent bonus or overtime history before including it in qualifying income. If you have received regular bonuses for 2+ years, lenders will usually average the last 2 years. Commission income also typically requires a 2-year history. Do not count on future raises or one-time bonuses when calculating affordability.
Existing debt directly reduces the amount you can borrow. Each $500 per month in debt payments (car loan, student loans, credit cards) reduces your maximum home price by approximately $60,000-$80,000 depending on interest rates. Paying off debts before applying for a mortgage can significantly increase your buying power.
Debt-to-income (DTI) ratio is your total monthly debt payments divided by your gross monthly income. Lenders use DTI to assess risk. Most conventional loans require a DTI below 43-45%, FHA loans allow up to 50% in some cases, and VA loans have more flexible DTI limits. A lower DTI means less financial risk and easier mortgage qualification.
No — a 15-year mortgage actually reduces what you can afford because the monthly payments are higher (shorter repayment period). However, you will pay significantly less interest overall. A $300,000 loan at 6.5% costs $1,896/month on a 30-year term but $2,613/month on a 15-year term. The 15-year saves you about $174,000 in total interest.
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