Home affordability planning
Mortgage Affordability Calculator
Quick answer: This mortgage affordability calculator helps homebuyers estimate how much house they can afford based on income, debts, and down payment.
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How do banks actually decide how much house you can afford, and why does their number sometimes feel higher than your comfort zone? This mortgage affordability calculator uses income, debts, and down payment inputs alongside the 28/36 rule so you can estimate a home budget before you talk to a lender.
Estimate your maximum home budget using lender-style rules
Enter your income, debts, down payment, and housing cost assumptions. The result updates live and uses the lower of the 28% housing rule and 36% total debt rule.
This home affordability estimate is a planning tool, not a lending decision. Actual approval can vary based on credit score, loan program, cash reserves, PMI, HOA fees, and lender-specific underwriting.
The 28/36 rule explained
The 28/36 rule is one of the most common mortgage affordability guidelines. The first half says your monthly housing payment should generally stay near 28% of gross monthly income, which helps keep the home itself from crowding out the rest of your budget.
The second half says total monthly debt obligations, including housing, should usually stay near 36% of gross monthly income. That means your car loan, student loan, minimum credit card payments, and other recurring debts matter just as much as the mortgage itself.
In practice, lenders often look at both limits and use the tighter one. That is why this calculator uses the lower of the housing-only rule and the total-debt rule when estimating how much house you can afford.
What lenders actually look at
- Credit score and credit history
- Debt-to-income ratio and recurring monthly obligations
- Employment history and income stability
- Down payment size and available cash reserves
Frequently Asked Questions
A common starting point is the 28/36 rule. Many borrowers begin by limiting housing costs to around 28% of gross monthly income and total monthly debts to around 36%.
Lower is usually better. Many conventional borrowers look strongest under 36% total DTI, although some loan programs allow higher ratios depending on credit, reserves, and other compensating factors.
No. Pre-approval shows what a lender may be willing to offer, while personal affordability should also factor in repairs, utilities, childcare, savings goals, travel, and your own comfort level.
No. Many buyers put down less than 20%, but a larger down payment can lower your loan amount, reduce monthly costs, and sometimes eliminate private mortgage insurance.