Tiny Toolkit

Mortgage Affordability Calculator — How Much House Can I Afford?

Find the maximum home price you can afford based on your income, debts, down payment, and target interest rate — using both the 28% front-end and 36% back-end debt-to-income rules that most conventional lenders apply. Enter your monthly gross income, existing debt payments, and loan details to see your estimated price ceiling, required income for a target price, and the monthly payment breakdown. Use this before starting a home search to set a realistic budget.

All processing happens in your browser. No data is sent to any server.

Frequently Asked Questions

What is the 28/36 rule?
The 28/36 rule is the standard guideline lenders use to assess borrower capacity. Your housing costs (mortgage, taxes, insurance) should not exceed 28% of gross monthly income (front-end ratio), and your total debt payments including housing should not exceed 36% (back-end ratio). Exceeding these thresholds doesn't automatically disqualify you, but it increases scrutiny.
Does this tell me what a lender will actually approve?
It gives you a solid estimate based on the same DTI ratios most conventional lenders use, but actual approval depends on your credit score, loan type, lender, employment history, and assets. FHA loans allow higher DTI ratios (up to 43–50%), while jumbo loans may require lower ratios.
Should I include property taxes and insurance in my budget?
Yes — they're included in the PITI payment (Principal, Interest, Taxes, Insurance) that lenders use to calculate your front-end ratio. Property taxes vary dramatically by state and county, and homeowners insurance depends on location and coverage level. Use realistic local estimates, not national averages.
How does my down payment affect affordability?
A larger down payment reduces your loan amount and monthly payment, making more homes affordable on the same income. It also eliminates PMI (private mortgage insurance) once you reach 20% equity, which can save $100–300/month on mid-range homes. Down payment size also affects your interest rate — 20%+ often unlocks better pricing.

Related Tools

Rental Cash Flow Calculator — Rental Property Profit Analysis

Calculate monthly and annual cash flow for any rental property. Enter rent, mortgage, taxes, insurance, vacancy, and repairs to see your true net cash flow. Free.

Cap Rate Calculator — Rental Property Analysis Tool

Calculate cap rate instantly. Enter rent, vacancy, expenses, and property value to get your NOI and capitalization rate — and compare investment properties. Free.

Cash-on-Cash Return Calculator — Rental Property ROI

Calculate cash-on-cash return on any rental property. Enter your annual cash flow and total cash invested to instantly see your CoC return. Free.

Related Articles

What Is House Hacking and How Does It Work?

House hacking means living in one unit of a multi-unit property and renting out the others — often covering most or all of your mortgage. Here's how to analyze a deal and get started.

5 min read