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Mortgage Affordability Calculator

How much house can you afford? Based on the 28/36 rule and your financial profile.

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How Much House You Can Afford

Maximum Home Price

$336,869

Maximum Loan Amount

$276,869

Estimated Monthly Payment

Principal & Interest$1,750.00
Property Tax (est.)$308.80
Insurance (est.)$140.36
Total Monthly$2,199.16

28/36 Rule (Backend Ratio)

28% housing limit$2,333.33
36% total debt limit$3,000.00
DTI with max payment31.2%
Researched by CentCalc Financial Editorial TeamData: 28/36 DTI rule + monthly amortization

How This Is Calculated

This calculator uses the 28/36 rule, the standard guideline that mortgage lenders apply to determine how much home you can afford.

Front-end ratio (28%): Your monthly housing payment — including principal, interest, property taxes, and insurance (PITI) — should not exceed 28% of your gross monthly income.

Back-end ratio (36%): Your total monthly debt payments — including housing, car loans, student loans, credit card minimums, and other debts — should not exceed 36% of your gross monthly income.

The calculator takes the more restrictive of the two ratios (after accounting for your existing monthly debts), then works backward through the mortgage payment formula to find your maximum loan amount. Your maximum home price equals the loan amount plus your down payment.

Estimated property tax (~1.1% of home value/year) and insurance (~0.5% of home value/year) are factored into the monthly payment breakdown.

Based on the 28/36 rule. Property tax estimated at 1.1% and insurance at 0.5% of home value. Does not include PMI, HOA, or closing costs. Actual lender requirements vary.

See our full methodology for every formula, data source, and assumption.

Frequently Asked Questions

What is the 28/36 rule?
The 28/36 rule states that your monthly housing payment should not exceed 28% of your gross monthly income, and your total monthly debt payments should not exceed 36%. Lenders use these ratios to determine loan approval.
How much income do I need to afford a $400,000 house?
To afford a $400,000 home with a 20% down payment at 6.5% on a 30-year mortgage, you would need an annual income of approximately $90,000–$110,000, assuming minimal other debts.
What costs are included in a monthly mortgage payment?
Your monthly payment (PITI) includes Principal, Interest, property Taxes (~1.1% of home value annually), and Insurance (~0.5% of home value annually). Conventional loans with less than 20% down require PMI (typically 0.3–1.5% of loan annually); HOA applies in 65% of new-construction communities (Census Bureau 2023).
Does a larger down payment increase how much house I can afford?
Yes. A larger down payment reduces the loan amount needed and may eliminate PMI if you put down 20% or more. PMI typically costs 0.3%–1.5% of the loan amount annually.
What is DTI and why does it matter?
DTI (debt-to-income ratio) is the percentage of your gross monthly income that goes toward debt payments. Most conventional loans require a DTI of 43% or lower, but the ideal is 36% or below.

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Estimates only. Does not include PMI, HOA fees, or closing costs. Actual lender requirements and interest rates vary. Consult a mortgage professional.