Home Affordability Calculator
Find out how much home you can afford using the 28/36 debt-to-income rule
How Home Affordability Is Calculated
Max PITI = Monthly Gross Income × 0.28
Max Housing = Monthly Income × 0.36 − Monthly Debts
The lower of the two limits is used to determine your maximum PITI, from which the max home price is derived by solving backwards through the mortgage payment formula.
Guide
How it works
The home affordability calculator uses two standard underwriting rules. The 28% front-end rule says your monthly housing costs (principal, interest, taxes, insurance — PITI) should not exceed 28% of your gross monthly income. The 36% back-end rule says your total monthly debt payments should not exceed 36% of gross income. Your maximum home price is determined by whichever limit is lower.
A higher down payment directly increases how much home you can afford because it reduces the loan amount and monthly P&I payment. Improving your credit score can also lower your interest rate and expand your budget significantly.
What is the 28/36 rule?expand_more
The 28/36 rule is a common guideline used by lenders. It states that no more than 28% of your gross monthly income should go to housing costs (front-end ratio), and no more than 36% should go to all debt payments combined (back-end ratio).
What does PITI mean?expand_more
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a typical monthly mortgage payment. This calculator includes all four in the affordability assessment.
Is PMI included?expand_more
Private Mortgage Insurance (PMI) is not included. If your down payment is less than 20%, you may owe an additional 0.5–1% of the loan annually, which would reduce the maximum home price you can afford.
How can I afford more house?expand_more
You can afford more home by increasing your income, reducing existing monthly debts, saving a larger down payment, or securing a lower interest rate by improving your credit score.
Next steps