Reviewed by Philip Grant · Updated June 2026
Maximum Home Price
—
Maximum Loan Amount
—
Estimated Monthly Payment (P&I)
—
Property Tax (monthly)
—
Insurance + HOA (monthly)
—
Total Monthly Housing Cost
—
Front-End DTI Used
—
Back-End DTI Used
—
The two DTI rules lenders use
Most conventional lenders apply two debt-to-income thresholds. The front-end ratio (housing costs ÷ gross income) should stay at or below 28%. The back-end ratio (all monthly debts including housing ÷ gross income) should stay at or below 36%, though many lenders stretch this to 43% for well-qualified borrowers. This calculator uses the stricter 28%/36% rules and gives you the lower of the two affordability limits.
What counts as a monthly debt?
Include minimum monthly payments on car loans, student loans, credit cards, personal loans, and any other recurring debt obligations. Don't include utilities, subscriptions, or groceries — lenders don't count those in the DTI calculation.
Down payment and PMI
If your down payment is less than 20% of the home price, most conventional loans require Private Mortgage Insurance (PMI), which typically adds 0.5%–1.5% of the loan amount per year to your monthly payment. This calculator doesn't factor in PMI — for a more detailed PMI analysis, use our Mortgage + PMI Calculator.
Frequently Asked Questions
How much house can I afford?
Lenders generally look at your debt-to-income ratio: your total monthly debt, including the new mortgage, should stay within roughly 36–43% of your gross monthly income. This calculator uses those DTI guidelines, plus your down payment, to estimate your maximum home price.
What is the 28/36 rule?
It is a common guideline: keep your housing costs at or below 28% of gross monthly income, and total debt at or below 36%. Staying inside those limits leaves room in your budget and improves your odds of loan approval.
Does my down payment change how much I can afford?
Yes. A larger down payment lowers the loan amount and monthly payment, so you can afford a higher price for the same monthly budget — and putting 20% down also lets you avoid PMI.
What costs should I consider beyond the mortgage payment?
Affordability here is based on principal, interest, and your other monthly debts. Remember that property taxes, homeowners insurance, and any HOA fees add to your real monthly cost, so it is wise to leave a margin below the maximum.
Why is my affordable price lower than what a lender offers?
Lenders quote the maximum you qualify for, not a comfortable amount. Borrowing below that maximum gives you breathing room so unexpected costs or a change in income do not strain your budget.