Works backward from your income and debts to a maximum price, using the lender's 28/36 debt-to-income rules — with the ratios adjustable.
Before taxes, including both earners on a joint application.
Car loans, student loans, credit-card minimums — not rent or utilities.
PMI applies only while the down payment is under 20% of the price.
28/36 is the classic conservative rule. Many lenders will approve up to 43–50% back-end — that doesn't make it comfortable.
Every point on this curve uses your income, debts, and down payment — only the rate changes. The dot is today's rate.
This home affordability calculator works backward from what you earn and owe to the largest mortgage — and home price — a lender is likely to approve. It uses the 28/36 debt-to-income framework but lets you tighten or loosen both ratios to match your own risk tolerance.
It is the debt-to-income guideline most lenders use: your housing payment should be no more than 28% of gross monthly income, and all debt payments combined no more than 36%.
Recurring obligations that appear on your credit report — car loans, student loans, credit-card minimums, and personal loans. Utilities, groceries, and subscriptions are not counted.
A larger down payment lowers the loan amount and monthly payment, which lets the same income support a higher purchase price. Reaching 20% down also removes PMI.