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.
The calculator works backward from your income and debts. It first finds your maximum monthly housing payment as the smaller of the front-end limit (28% of gross monthly income) and the back-end limit (36% minus your existing debt payments). Then it strips out taxes, insurance, and PMI and solves the amortization formula in reverse to find the largest loan — and therefore home price — that payment supports at your rate and term.
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.
A higher rate means more of each payment goes to interest, so the same monthly budget supports a smaller loan. Even a one-point rate move can change your maximum price by tens of thousands of dollars.
Not necessarily. Qualifying is the lender's ceiling, not a recommendation. Many buyers deliberately stay below it to leave room for savings, emergencies, and lifestyle costs the ratios ignore.
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