Mortgage Affordability Calculator

Lenders don't ask what you'd like to spend - they apply debt-to-income limits. This calculator uses the classic 28/36 rule (housing under 28% of gross income, all debts under 36%) plus your down payment and rate to estimate a realistic maximum home price.

Your numbers

$
$
$
%
yrs
%
$
You can comfortably afford about — moderate scenario (31/43 DTI)
Monthly housing budget—
Scenarios lenders use
Conservative (28/36)—
 ↳ monthly budget—
Aggressive (36/45)—
 ↳ monthly budget—
⚠️—

Results update as you type and are estimates for education only — they don't account for taxes, fees or your personal situation, and nothing here is financial advice. Your inputs stay on this device.

How it works

  1. Enter gross annual household income and your existing monthly debt payments (loans, cards, car).
  2. The housing budget is the lower of: 28% of monthly income, or 36% of income minus existing debts.
  3. Estimated tax and insurance are set aside from that budget; the remainder supports the loan payment.
  4. The maximum loan is derived from that payment at your rate and term; add the down payment for the price.

The formula

Max payment = min(0.28 x income/12, 0.36 x income/12 - debts). Max loan L from M = L x i(1+i)^n / ((1+i)^n - 1) solved for L. Max price = L + down payment.

Frequently asked questions

Is the 28/36 rule used in Europe too?
European lenders use the same concept with different numbers - typically capping total debt service around 35-45% of income, and stress-testing at higher rates. The 28/36 output is a sensible conservative estimate on both sides of the Atlantic; your specific lender's cap decides the final figure.
Why is my result lower than online pre-approvals?
Pre-approval tools often quote the absolute ceiling. This calculator deliberately reserves room for property tax and insurance and applies the conservative 28% housing cap - the level at which the mortgage stays comfortable rather than merely approvable.
How much should the down payment be?
20% avoids mortgage insurance in the US and secures better rates in most of Europe, but many buy with 5-10% down. A larger down payment raises the affordable price one-for-one and lowers the monthly payment.
Does this include property tax and insurance?
Yes - the tool sets aside your estimates for both before sizing the loan, which is exactly why its answer is more realistic than payment-only calculators.
Keep planning

Related calculators

Mortgage Calculator

Estimate your monthly payment, total interest and full cost of a home loan.

Open calculator

Loan Calculator

Work out the monthly payment and total interest on any personal, auto or student loan.

Open calculator

Credit Card Payoff Calculator

See how fast a fixed monthly payment clears your balance - and what it costs in interest.

Open calculator