Home Affordability Calculator
Find your maximum home price based on income, debts, and down payment using the 28/36 lending rule.
Maximum Home Price
$319,367
Max Loan Amount
$259,367
Est. Monthly Payment
$2,100
Front-End DTI
28.0%
Back-End DTI
34.7%
Based on the 28/36 rule: housing costs ≤ 28% of gross income, all debts ≤ 36%.
How Home Affordability Is Calculated
This home affordability calculator uses the 28/36 rule to find the maximum home price you can afford. The 28% front-end constraint means your total housing payment (mortgage principal + interest + property taxes + insurance) cannot exceed 28% of gross monthly income. The 36% back-end constraint means total debt payments cannot exceed 36% of income.
Solving for maximum home price is complex because property taxes scale with home price (making the equation circular). This calculator uses binary search — iterating between a low estimate and high estimate until convergence — to find the exact home price where your housing payment meets the 28% limit. Both the front-end and back-end constraints are checked, and the more restrictive limit applies.
The results show your estimated monthly payment broken down by component, plus your front-end and back-end DTI percentages. If either exceeds its limit, the calculator automatically reduces the home price until both constraints are satisfied.
Keep in mind this calculator shows the maximum a lender might approve — not necessarily what you should spend. Targeting a home payment of 20–25% of income instead of 28% gives you more financial flexibility for savings, emergencies, and the ongoing costs of homeownership that many first-time buyers underestimate.