How much house can I afford?

A common rule is the 28/36 rule: spend no more than 28% of gross monthly income on housing costs, and no more than 36% on total debt (housing plus car loans, student loans, credit cards).

What is included in a monthly mortgage payment?

Monthly payments typically include PITI: Principal (loan repayment), Interest (borrowing cost), Taxes (property tax), and Insurance (homeowner insurance plus PMI if applicable). Our calculator factors in all components.

What is a good down payment amount?

20% down is ideal as it avoids Private Mortgage Insurance (PMI). However, many loans accept 3-5% down. FHA loans require 3.5% minimum. Higher down payments mean lower monthly payments and less total interest.

Mortgage Affordability Calculator

Find out how much house you can afford based on your income, debts, down payment, and interest rate.

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Your Finances

Annual gross income ($)

Monthly debt payments ($)

Down payment ($)

Loan Details

Interest rate (%)

Loan term

Property tax rate (% per year)

Monthly home insurance ($)

Max DTI ratio: 36%

Conservative 20%Standard 36%Aggressive 50%

You can afford

$261,729

Loan: $211,729 · Down: 19.1%

Principal & Interest

$1,338/mo

Property Tax

$262/mo

Home Insurance

$150/mo

Total Monthly$1,750/mo

Debt-to-Income Ratio

Loan-to-Value

80.9%

Total Interest

$270,049

Total Paid

$481,778

Interest Ratio

128%

PMI Notice: With less than 20% down, Private Mortgage Insurance may add $50-$200+/month.

Amortization Schedule (30 years)

$209,362

$206,837

$204,143

$201,269

$198,202

$194,929

$191,437

$187,712

$183,737

$179,496

$174,970

$170,142

$164,990

$159,494

$153,629

$147,371

$140,694

$133,571

$125,970

$117,860

$109,206

$99,974

$90,123

$79,612

$68,397

$56,432

$43,664

$30,042

$15,508

Principal Interest

How It Works

This calculator uses the debt-to-income (DTI) ratio method. Lenders typically look for a total DTI of 36% or less, though some allow up to 43-50% for qualified borrowers. The calculation accounts for your mortgage payment (principal + interest), property taxes, insurance, and existing debts.

Frequently Asked Questions

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