Mortgage Affordability Calculator

How Much House Can You Afford?

Determining how much home you can afford is one of the most important financial decisions you'll make. Lenders use a framework called Debt-to-Income ratio (DTI) to decide how much they'll lend you — but understanding it yourself puts you in a stronger negotiating position.

The 28/36 Rule

The classic guideline says your housing costs should not exceed 28% of gross monthly income (front-end DTI), and all debt payments combined should not exceed 36% (back-end DTI). Many modern lenders accept up to 43% back-end DTI for qualified mortgages, and some FHA loans allow up to 50%.

What Counts as "Housing Costs"?

Lenders look at your full PITI payment — Principal, Interest, Taxes, and Insurance. HOA dues are also included. This calculator uses all of these to give you a realistic affordability estimate.

How Down Payment Affects Affordability

A larger down payment directly increases what you can afford in two ways: it reduces the loan amount needed, and if you hit 20% down, you avoid Private Mortgage Insurance (PMI), which can add $100–$300/month to your payment.

Ways to Afford More Home

• Pay down existing debts to lower your back-end DTI
• Increase your down payment to reduce the loan needed
• Consider a 15-year loan if you want to pay it off faster (though monthly payments are higher)
• Improve your credit score to qualify for a lower interest rate
• Shop multiple lenders — rates can vary by 0.5–1% for the same borrower

Don't Forget the Hidden Costs

Lenders approve you for a maximum — but that doesn't mean you should borrow that much. Budget for maintenance (1–2% of home value annually), utilities, repairs, and moving costs. Many financial advisors suggest buying at 80–90% of your maximum approval to maintain breathing room.