Mortgage Affordability Calculator
Lenders typically cap your total monthly debt payments at around 36% of your gross income (the "debt-to-income" or DTI rule). This calculator works backwards from that limit to estimate the maximum home price — and loan size — you could realistically afford.
How to use
- Enter your gross (pre-tax) annual household income.
- Enter your existing monthly debt payments (car loans, student loans, credit card minimums).
- Enter your down payment amount and the mortgage interest rate you expect.
- The estimated maximum home price, loan amount and monthly payment update instantly.
Frequently asked questions
What is the 36% rule?
It is a common lending guideline that your total monthly debt payments — including the new mortgage — should not exceed 36% of your gross monthly income. Many lenders allow more, and some conservative budgets aim for less.
Does this include property tax and insurance?
This simplified estimate covers principal and interest only. Property taxes, homeowners insurance, HOA fees and PMI will reduce what you can afford, so treat the result as an upper bound.
How big should my down payment be?
20% down avoids PMI (private mortgage insurance) on conventional loans, but many programs accept 3–5% down. A larger down payment lowers both your loan size and monthly payment.