Lender approval
A lender checks income, debts, credit, savings, property type, and loan program rules to estimate the mortgage you may qualify for.
Home affordability calculator
How Much Home Can You Afford?
Use this free home affordability calculator to estimate a realistic home buying budget. Enter income, monthly debts, down payment, mortgage rate, property taxes, homeowners insurance, HOA dues, and DTI rules to see how much house you may be able to afford.
28/36 rule
DTI ratio
Taxes and insurance
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Buying power
Mortgage affordability calculator with DTI and the 28/36 rule
People search for a home affordability calculator, mortgage affordability calculator, house affordability calculator, or home loan affordability calculator because they are asking one practical question: how much home can I afford? This tool turns income, debt, down payment, mortgage rate, taxes, insurance, and HOA dues into an estimated home price range.
The calculator uses front-end and back-end affordability ratios similar to the logic lenders review during underwriting. It also keeps the result human: being approved for a loan and feeling comfortable with the monthly payment are not always the same thing.
Affordability basics
What is home affordability?
Comfortable payment
Your personal budget may need room for savings, travel, childcare, repairs, and emergencies even if a lender approves a higher number.
Total housing cost
Affordability should include principal, interest, property taxes, homeowners insurance, HOA dues, and maintenance planning.
DTI calculator
How lenders estimate affordability
| Front-end ratio | Your estimated housing payment divided by gross monthly income. Housing usually includes principal, interest, property tax, homeowners insurance, PMI if applicable, and HOA dues. |
|---|---|
| Back-end ratio | All monthly debt payments, including the new mortgage, divided by gross monthly income. This is what many users mean by a debt to income calculator or DTI ratio calculator. |
| Credit and reserves | Strong credit, cash reserves, low loan-to-value, and stable income can affect lender approval even when DTI is higher than a simple rule of thumb. |
| Loan program | Conventional, FHA, VA, and USDA loans can use different rules. Treat the calculator as a planning estimate, then confirm with a lender. |
The Consumer Financial Protection Bureau explains debt-to-income ratio as a way lenders measure monthly debt against income.
28/36 rule
The 28/36 rule, explained
| Rule | Formula | What it means |
|---|---|---|
| 28% housing ratio | Gross monthly income x 28% | A classic guideline for the maximum monthly housing payment. |
| 36% total DTI | Gross monthly income x 36% - existing debts | A conservative cap for all monthly debt, including the new mortgage. |
| Lower number wins | Minimum of the two caps | The more restrictive limit becomes the estimated housing budget. |
The 28/36 rule is not a law. Some buyers qualify above it, especially with strong credit or documented reserves. It is still a useful guardrail because it keeps the monthly payment from becoming the whole budget.
Real monthly cost
What costs to include besides the mortgage payment
| Principal and interest | The loan payment itself, based on the mortgage balance, interest rate, and term. |
|---|---|
| Property taxes | Local property taxes vary widely by location. The calculator lets you enter an annual tax rate estimate. |
| Homeowners insurance | Insurance can change materially by state, property risk, coverage level, and insurer. |
| PMI | Private mortgage insurance may apply when a conventional down payment is below 20%. Use the mortgage calculator for PMI-specific modeling. |
| HOA dues | Association or condo fees can affect affordability even though they do not reduce the loan balance. |
| Maintenance | Many planning rules reserve roughly 1% to 4% of home value per year for repairs and maintenance, depending on age and condition. |
Example budgets
Income, debt, and down payment examples
| Annual income | Monthly debts | Down payment | Estimated home budget |
|---|---|---|---|
| $60,000 | $300 | $15,000 | $195,000 - $200,000 |
| $85,000 | $450 | $25,000 | $280,000 - $285,000 |
| $110,000 | $600 | $40,000 | $370,000 - $375,000 |
| $150,000 | $900 | $60,000 | $510,000 - $515,000 |
These examples use a 30-year fixed mortgage around 6.5% as of June 2026, property tax near 0.9% of home value, and homeowners insurance near 0.6%. Your result changes with rate, location, credit profile, insurance cost, and loan program.
When to buy less than the calculator says
If your income is variable, your household relies on one paycheck, childcare costs are coming, insurance is rising in your market, or you want more savings room, aim below the maximum home price.
Need a full mortgage payment?
Use the mortgage calculator when you need PMI, taxes, insurance, HOA, extra payments, and a full amortization schedule in one page.
Planning payoff later?
After buying, the mortgage payoff calculator can estimate how extra payments may reduce interest and shorten the loan.
FAQ
Home Affordability Calculator FAQs
What is a good debt-to-income ratio for buying a home?
A back-end DTI near 36% or lower is a conservative comfort zone. Some loans close at higher ratios, but a lower DTI usually leaves more room for savings, repairs, and surprise costs.
How much income do I need to afford a $300,000 house?
As a rough estimate, many buyers need around $80,000 to $85,000 per year with manageable debt, a solid down payment, and a 30-year mortgage around mid-2026 rate levels. Your taxes, insurance, debts, and rate can move that number.
Does this calculator include property taxes and homeowners insurance?
Yes. It estimates property tax and homeowners insurance from annual percentage inputs and includes HOA dues if you enter them.
Can I afford more house than the calculator shows?
Possibly. A lender may approve more with strong credit, reserves, or program-specific rules. The calculator is designed as a planning guardrail, not a maximum approval promise.
Is the 28/36 rule still realistic?
It can feel strict in high-cost markets, but it is still useful as a comfort check. If you go above it, make sure your budget still has room for maintenance, savings, insurance increases, and emergencies.
Guides
Loan math without guesswork
Plain-English calculator notes for EMI, car payments, interest, amortization, payoff timing, and schedule exports.
What is EMI? Meaning, formula, and example
Learn how equated monthly installments work, what changes a payment, and how flat and reducing interest differ.
Read guide →What is an amortization schedule?
Learn how to read principal, interest, balance, extra payments, and payoff timing in a loan schedule.
Read guide →How much house can I afford?
Use income, DTI, down payment, taxes, insurance, and hidden costs to estimate a home budget.
Read guide →Need the full monthly mortgage payment?
Open the mortgage calculator to estimate principal, interest, taxes, homeowners insurance, PMI, HOA fees, extra payments, and amortization.
Open mortgage calculator →