CalcJar

Mortgage Affordability Calculator

Find out how much house you can afford based on your income, debts, down payment, and current mortgage rates. Uses the 28/36 rule.

Mortgage Affordability Calculator

Find out how much house you can afford using the 28/36 rule

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How the Mortgage Affordability Calculator Works

This calculator uses the widely-accepted 28/36 qualifying rule that most lenders apply. The "front-end" ratio limits your total housing costs (principal, interest, taxes, insurance, HOA, and PMI) to 28% of your gross monthly income. The "back-end" ratio limits your total monthly debts — housing costs plus all other obligations — to 36% of gross income. The calculator uses whichever constraint is more restrictive to determine your maximum home price.

What Is PMI and When Does It Apply?

Private Mortgage Insurance (PMI) is typically required when your down payment is less than 20% of the home's purchase price. This calculator automatically estimates PMI at 0.5% of the loan amount annually when applicable. PMI adds to your monthly costs and therefore reduces the maximum home price you can afford.

Tips to Improve Your Affordability

You can increase the home price you qualify for by paying down existing debts to lower your DTI ratio, saving a larger down payment to eliminate PMI and reduce the loan amount, improving your credit score to secure a lower interest rate, or choosing a longer loan term to reduce monthly payments. Even small changes in interest rate or debt payments can meaningfully shift your purchasing power.