Finance
Mortgage Affordability Calculator
Find out how much house you can afford based on your income, debts, and the 28/36 rule.
Enter your financial details and click Calculate
How is this calculated?
28% Rule: Max Housing Payment = Gross Monthly Income × 0.28
36% Rule: Max Total Debt = Gross Monthly Income × 0.36
Max Mortgage Payment = Min(28% rule, 36% rule - existing debts)
Max Loan = PV of monthly payments at given rate for 30 years
Max Home Price = Max Loan + Down PaymentFAQ
Frequently asked questions
What is the 28/36 rule?
The 28/36 rule says your housing costs should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. Lenders use this to determine how much you can borrow.
What is DTI ratio?
Debt-to-Income (DTI) ratio is your total monthly debt payments divided by gross monthly income. Most lenders prefer a DTI below 36%, though some allow up to 43% for qualified borrowers.
What costs are included in housing expenses?
Housing expenses include mortgage principal and interest, property taxes, homeowner insurance, PMI (if applicable), and HOA fees. The 28% rule applies to all these combined.
How much down payment do I need?
Conventional loans typically require 3-20% down. FHA loans need 3.5%. VA and USDA loans can be 0% down. A 20% down payment avoids private mortgage insurance (PMI).
Does this calculator account for PMI?
This calculator focuses on the 28/36 rule affordability limits. If your down payment is less than 20%, factor in approximately 0.5-1% of the loan amount annually for PMI.
Is this mortgage affordability calculator free?
Yes, completely free with no sign-up required. All calculations happen in your browser — your financial data is never sent to any server.