Home Affordability Calculator

The 28/36 rule is a guideline lenders use to assess mortgage affordability. It says your monthly housing costs should not exceed 28% of your gross monthly income (front-end ratio), and your total monthly debt payments — housing plus all other debts — should not exceed 36% of your gross monthly income (back-end ratio). Staying within both limits improves your odds of loan approval and financial stability.

Multiply the target home price by roughly 4–5× as a starting rule of thumb, but the 28/36 calculation is more precise. For example, to afford a $300,000 home with a 7% rate and $40,000 down, you typically need gross annual income of around $80,000–$90,000, assuming modest existing debts. Use this calculator with your actual numbers for a personalized estimate.

Yes — this calculator reserves approximately 25% of your maximum monthly housing payment to cover property taxes, homeowners insurance, and PMI (if applicable). The remaining 75% is applied to principal and interest when estimating the loan you can afford. Because actual tax and insurance rates vary widely by location and lender, treat the result as an estimate; your lender will provide exact figures.