Mortgage Affordability Calculator
Standard 28/36 DTI rule used by conventional mortgage lenders. Adjust inputs to see your max affordable home price.
Estimate excludes PMI (typically required below 20% down), HOA dues, and discretionary maintenance reserves. Lender requirements vary; this is a planning estimate, not pre-approval. Refer to our methodology for assumptions.
How the 28/36 Rule Works
Mortgage lenders use two debt-to-income thresholds. Front-end DTI 28%: your total monthly housing cost (principal + interest + property tax + insurance, or PITI) shouldn't exceed 28% of gross monthly income. Back-end DTI 36%: PITI plus all other recurring debt payments (auto, student loans, credit cards, alimony) shouldn't exceed 36% of gross monthly income. The smaller of the two limits determines your maximum affordable home price.
Why the Output Will Vary
- Property tax rate swings wildly by state — 0.27% (HI) to 2.49% (NJ). Even within a state, county rates differ.
- Homeowners insurance in catastrophe zones (FL hurricane, CA wildfire) can be 4-8x the national median.
- Interest rate is the single largest swing variable — a 1% rate change moves max affordability ~10-12%.
- PMI applies below 20% down (~0.5-1.5% of loan balance annually) and is not included here — increase your back-end debt estimate to model PMI exposure.
- HOA dues on condos and planned communities range $0-$1,200/month; treat as monthly debt for accurate back-end DTI.
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Frequently Asked Questions
How much house can I afford on my salary?
A common guideline is the 28/36 rule: spend no more than 28% of gross monthly income on housing and 36% on total debt. Enter your income, debts, down payment, and rate to see your maximum home price and full monthly payment.
What is the 28/36 rule?
It's the debt-to-income standard most lenders use. Front-end DTI caps housing costs (principal, interest, tax, insurance) at 28% of gross monthly income; back-end DTI caps all debt at 36%. The lower of the two sets your limit.
Does the calculator include property tax and insurance?
Yes — it estimates full PITI (principal, interest, property tax, and homeowners insurance), because lenders qualify you on the complete monthly housing payment, not just principal and interest.
How much down payment do I need?
Conventional loans can allow as little as 3%, but under 20% usually triggers PMI. A larger down payment lowers your monthly payment and raises the home price you can afford.