Free Mortgage Affordability Calculator
Estimate the home price you can afford based on your income, debts, and down payment. This tool uses the 28/36 rule to provide a realistic home affordability estimate.
Your Financial Information
Car loans, student loans, credit cards, etc.
years
Affordable Home Price
You Can Afford
$246,176
Max Loan Amount$226,176
Down Payment$20,000 (8.1%)
Est. Monthly Payment$1429.58
Debt-to-Income Ratios
Front-End (Housing)28.0%
Back-End (Total Debt)36.0%
Note: This is an estimate. Your final approved loan amount may vary based on credit score, employment history, and lender requirements.
How Affordability is Calculated
This calculator uses the 28/36 rule, a common guideline used by lenders to assess affordability.
- Front-End Ratio (28%): Your total monthly housing payment (Principal, Interest, Taxes, and Insurance - PITI) should not exceed 28% of your gross monthly income.
- Back-End Ratio (36%): Your total monthly debt payments (PITI plus other debts like car loans, student loans, and credit card payments) should not exceed 36% of your gross monthly income.
The calculator determines the maximum affordable home price based on the more conservative of these two ratios to give you a realistic estimate.
Tips for Improving Affordability:
- Pay down existing debts to lower your back-end ratio
- Increase your down payment to reduce the loan amount needed
- Improve your credit score to qualify for better interest rates
- Consider a longer loan term to lower monthly payments (though you'll pay more interest overall)