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Mortgage Affordability Calculator
See how much home you can realistically buy. Enter your income, debts, down payment and a rate, then press Calculate to get the price and loan amount that fit standard lender limits.
Written by TopicDrill Editorial Team·Updated June 2026
Monthly payment breakdown
at $307.8k home priceAdvertisement
How the affordability calculator works
The tool starts from two debt to income ratios that mortgage underwriters use. The front-end ratio caps your housing payment at a share of gross income, while the back-end ratio caps every debt payment combined. Whichever ceiling is stricter sets the most you can spend on housing each month.
From that monthly ceiling the calculator removes the parts of the payment that are not loan repayment, namely property tax, homeowners insurance and HOA dues, and then converts what is left into the largest mortgage that rate and term can support. Adding your down payment back on top gives the home price you can afford.
A worked example
Suppose you earn 90,000 dollars a year, carry 450 dollars of monthly debt and have 40,000 dollars to put down at a 6.5 percent rate over 30 years. With 28 and 36 percent limits the back-end rule allows about 2,250 dollars for housing. After tax and insurance, that supports a loan near 290,000 dollars and a home price around 330,000 dollars.
Things to keep in mind
Approval also depends on credit score, cash reserves and the lender's own overlays, so the real limit can differ. For neutral guidance on shopping for a loan, see the CFPB home buying guide. Once you settle on a price, estimate the monthly payment with our mortgage amortization calculator.
Frequently asked questions
How does a lender decide how much house I can afford?
Lenders compare your monthly debts to your gross monthly income using two debt to income ratios. The front-end ratio looks only at the housing payment, and the back-end ratio adds your other debts such as car loans and credit cards. Your affordable payment is whichever of those two limits is lower, and that payment is then turned back into a loan amount and home price.
What are the 28 and 36 rules?
A common guideline says your housing payment should stay at or below 28 percent of gross monthly income, and your total debt payments should stay at or below 36 percent. Those are the default front-end and back-end limits in this tool, but you can raise or lower them to match a specific loan program or your own comfort level.
Does the calculator include taxes and insurance?
Yes. Property tax, homeowners insurance and any HOA dues all count toward the housing payment a lender measures, so the tool subtracts them before solving for principal and interest. Because property tax rises with the home price, the calculator solves for the price where the full payment exactly meets your limit.
Is the affordable amount how much I should actually spend?
Not necessarily. The result is the maximum a typical lender would approve, not a recommendation. Many buyers choose to borrow less to keep room for savings, repairs and changes in income, so treat the number as a ceiling rather than a target.
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