Mortgage Affordability Calculator
Calculate how much house you can afford based on income and DTI
Calculator
Enter your income to see how much house you can afford
About Mortgage Affordability
- Front-End DTI: Housing costs / Gross income (recommended: 28%)
- Back-End DTI: All debts / Gross income (recommended: 36%)
- Includes principal, interest, property tax, and insurance (PITI)
- Actual approval depends on credit score, employment, and other factors
How to Use
Calculate how much house you can afford
Enter income
Input your gross annual household income
Enter debts
Input existing monthly debt payments
Set down payment
Enter your available down payment
View affordability
See maximum home price and monthly payment
Affordability Formula (28/36 Rule)
Max Housing = Gross Monthly Income × 0.28 Max Total Debt = Gross Monthly Income × 0.36
Housing costs include mortgage, taxes, insurance. Total debt adds car loans, student loans, credit cards.
Frequently Asked Questions
Banks typically approve mortgages up to 3-4.5× your annual income. The 28/36 rule: housing costs should be under 28% of gross income, total debt under 36%. Earning $80,000/year, maximum house payment ~$1,867/month.
DTI (Debt-to-Income) ratio is monthly debt payments divided by gross monthly income. Front-end DTI covers housing costs only (target <28%). Back-end DTI includes all debts (target <36%). Higher DTI = harder to qualify for mortgage.
20% down avoids PMI and gets best rates. FHA loans allow 3.5% down with PMI. Conventional loans allow 3-5% down. VA loans allow 0% down for veterans. More down payment = lower monthly payments and better rates.
Beyond mortgage: property taxes (1-2% of value), homeowners insurance ($1,500-3,000/year), PMI if <20% down, HOA fees, maintenance (1-3% of value annually), utilities, closing costs (2-5% of purchase price).