Home Affordability Calculator
Before you shop, find the ceiling. This applies the 28/36 rule lenders use — a cap on housing costs and on total debt as a share of your income — to estimate the home price, loan and monthly payment you can realistically carry.
Your numbers
Result
- Maximum loan
- $316,186.24
- Down payment
- $40,000.00
| Rule | Monthly limit |
|---|---|
| Housing ≤ 28% of income (front-end) | $1,960.00 |
| All debts ≤ 36% of income, minus current debts (back-end) | $2,020.00 |
| Payment used for the mortgage | $1,960.00 |
The 28/36 rule
Lenders size a mortgage against two debt-to-income limits. The front-end ratio says housing should take no more than 28% of gross monthly income. The back-end ratio says *all* your debt — housing plus car, student and card payments — should stay under 36%. Whichever limit is lower sets the payment you have to work with; existing debts eat into the 36% before the mortgage even starts.
From payment to price
Once the affordable payment is known, it is run through the mortgage formula in reverse to find the largest loan it can support at your rate and term, and the down payment is added on top:
max price = affordable loan + down payment
A bigger down payment raises the price directly, and a lower rate or longer term lets the same payment carry a larger loan.
What the estimate leaves out
This is a guideline, not a pre-approval. The 28% housing figure here is treated as principal and interest; your real housing cost also includes property tax, homeowners insurance, any mortgage insurance and HOA fees, which a lender counts inside the 28%. So treat the result as an optimistic ceiling and leave room. Your credit score, employment history and cash reserves also shape what a lender will actually offer.
Informational and educational result. Not a substitute for professional advice.
Frequently asked questions
Sources
- Consumer Financial Protection Bureau (CFPB) — Debt-to-income ratio
- The 28/36 qualifying ratio used in mortgage underwriting
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