Mortgage Affordability Calculator
Find out how much house you can afford based on your income, debts, and down payment. Uses the 28/36 DTI rule for accurate results.
Car loans, student loans, credit cards, etc.
You can afford a home up to
$284,968
Loan amount: $244,968 with $40,000 down
Comfortable Budget
$284,968
Based on 28% DTI front-end ratio
Stretch Budget
$333,347
Based on 33% DTI front-end ratio
Monthly Payment Breakdown
Principal + Interest
$1,548.36
Property Tax
$284.97
Insurance
$150.00
Total Monthly
$1,983.33
Debt-to-Income Ratios
Recommended: 28% or less
Recommended: 36% or less
Affordability by Loan Term
| Term | Max Home Price | Monthly Payment | Total Interest |
|---|---|---|---|
| 15 years | $224,668 | $1,983.32 | $104,890 |
| 20 years | $252,084 | $1,983.33 | $167,414 |
| 30 years(selected) | $284,968 | $1,983.33 | $312,443 |
About Mortgage Affordability Calculator
This mortgage affordability calculator helps you determine how much home you can afford based on your income, existing debts, down payment, and current interest rates. It uses the standard 28/36 debt-to-income (DTI) rule that most lenders follow.
How the 28/36 Rule Works
Lenders use two DTI ratios to evaluate borrowers. The front-end ratio (28%) limits your housing costs to 28% of gross monthly income. The back-end ratio (36%) limits your total debt payments to 36% of gross monthly income. This calculator applies both rules and uses the more conservative result.
Monthly Payment Breakdown
See exactly where your money goes each month with a breakdown of principal and interest, property taxes, and homeowners insurance. This gives you a realistic picture of the total monthly cost of owning a home, not just the loan payment.
Comfortable vs. Stretch Budget
The calculator shows two price ranges. The comfortable budget follows the 28% front-end ratio, leaving more room for savings and other expenses. The stretch budget uses a higher ratio for buyers who are willing to allocate more income toward housing. Both figures help you set realistic expectations when shopping for a home.
What to Consider
- Your actual rate depends on credit score, loan type, and lender
- Budget for closing costs, which are typically 2-5% of the home price
- A down payment of 20% or more avoids private mortgage insurance (PMI)
- Property tax rates vary significantly by location
- Consider maintenance costs of roughly 1% of home value per year
All calculations are performed in your browser. No financial data is stored or transmitted.
Frequently Asked Questions
What is the 28/36 rule for mortgage affordability?
The 28/36 rule is a guideline lenders use to determine how much you can borrow. The "28" means your total housing costs (mortgage payment, taxes, and insurance) should not exceed 28% of your gross monthly income. The "36" means your total debt payments (housing costs plus car loans, student loans, credit cards, etc.) should not exceed 36% of your gross monthly income.
What counts as monthly debt in the DTI calculation?
Monthly debts include car loan payments, student loan payments, minimum credit card payments, personal loan payments, child support, alimony, and any other recurring debt obligations. It does not include utilities, groceries, subscriptions, or other living expenses that are not debt repayment.
How does the down payment affect how much house I can afford?
A larger down payment directly increases how much house you can buy because it reduces the loan amount needed. For example, if you can afford a $300,000 loan and have a $60,000 down payment, you can buy a $360,000 home. A bigger down payment also means lower monthly payments and potentially a better interest rate.
What is the difference between comfortable and stretch budget?
The comfortable budget uses the 28% DTI front-end ratio, which gives you room in your monthly budget for other expenses and savings. The stretch budget pushes closer to the 36% total DTI limit, which means higher payments but a more expensive home. The stretch budget leaves less financial flexibility for unexpected costs.
Does this calculator include property taxes and insurance?
Yes. The calculator factors in an estimated annual property tax rate and monthly homeowners insurance. These costs are included in the monthly payment breakdown and affect the maximum home price you can afford, since lenders consider total housing costs when qualifying borrowers.