House Affordability Calculator - Calculator See


House Affordability Calculator

Calculate maximum home purchase price based on household income, monthly debt payments, down payment, and lender debt-to-income (DTI) limits.

Calculator Inputs

$
Gross before-tax household earnings.
$
Auto loans, student loans, minimum credit card payments.
$
Liquid cash available.
%
30-year fixed APR.

Calculated Results

Maximum Affordable Home Price
$385,000.00
Estimated Monthly Payment (PITI) $2,350.00 / mo
Maximum Front-End DTI (28%) $2,333.33 / mo
Maximum Back-End DTI (36%) $3,000.00 / mo
Values calculate live as you adjust inputs.

About House Affordability Calculator

Applies standard conservative underwriting benchmarks (the 28/36 debt-to-income rule) to evaluate home purchasing capacity.

What is House Affordability Calculator?

Applies standard conservative underwriting benchmarks (the 28/36 debt-to-income rule) to evaluate home purchasing capacity.

How to Use This Calculator

  1. Enter total gross household income.
  2. Enter monthly debt payments (auto, credit, student).
  3. Enter down payment cash and current mortgage rate.
  4. Review maximum purchase price and safe monthly mortgage allowance.

The Mathematical Formula & Variables

Affordable Payment = min(28% Gross Income, 36% Gross Income - Monthly Debts)

Step-by-Step Worked Example

Scenario: $100k income ($8,333/mo), $500 monthly debts, $50k down payment, 6.5% rate.

  1. 28% Front-end = $2,333/mo.
  2. 36% Back-end = $3,000 - $500 = $2,500/mo.
  3. Allowed monthly PITI = $2,333.
  4. Borrowing capacity ≈ $335,000 + $50,000 down payment = $385,000.

Result: $385,000.00 Home

Frequently Asked Questions

What is the 28/36 rule?

A mortgage guideline stating that housing costs should not exceed 28% of gross monthly income, and total debts (housing + consumer debts) should not exceed 36%.