Home Affordability Calculator
Calculate the maximum home price you can afford based on income, debts, and down payment. Uses 28%/36% DTI rules and 2026 mortgage rates.
See step-by-step calculation
When to use this calculator
- First-time buyers estimating a realistic price range before house-hunting
- Homeowners planning to upsize or downsize and checking new affordability
- Couples combining incomes to see how much more they can qualify for
- Real estate agents quickly sizing up buyer budgets during consultations
- Financial planners stress-testing client housing costs against retirement savings goals
- Renters deciding whether buying makes financial sense in their current situation
28/36 DTI Rule: Lender Limits & Key Mortgage Reference Values (U.S., 2026)
| Parameter | Limit / Value | Notes |
|---|---|---|
| Front-end DTI limit | 28% of gross monthly income | Max housing costs (PITI): principal, interest, taxes, insurance |
| Back-end DTI limit | 36% of gross monthly income | Max all debts: housing + car loans, student loans, credit cards, etc. |
| Binding limit | MIN(front-end, back-end) | Whichever is more restrictive determines your max loan |
| Conventional loan min. credit score | 620+ | Required for conventional mortgage approval |
| FHA loan min. credit score | 580+ | Federal Housing Administration loans allow lower scores |
| PMI cost range | 0.5%–1.5%/yr of loan amount | Required when down payment < 20% of home price (~$100–$300/mo) |
| Jumbo loan back-end DTI | ≤ 43% | Stricter limit for loans above conforming limit |
| 2026 conforming loan limit (most counties) | ~$806,500 | Loans above this are considered jumbo loans |
| HOA / condo fees | Counted in PITI by lenders | Add to monthly debts if applicable |
Fuente: CFPB, FHFA, U.S. Department of Housing and Urban Development (HUD), Freddie Mac (2026)
How it works
What is home affordability?
Home affordability is the maximum home price you can purchase based on your gross income, existing debts, and down payment. Lenders typically use the 28/36 debt-to-income rule: your housing costs should not exceed 28% of gross income, and total debts should not exceed 36%. This ensures you maintain financial stability while carrying a mortgage.
How It Works
This calculator applies the 28/36 DTI rule — the industry-standard guideline used by conventional mortgage lenders in the United States. Two separate limits are computed and the more restrictive one sets your maximum loan amount.
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The Formula
Gross Monthly Income (GMI) = Gross Annual Income ÷ 12
Front-End Limit:
Max PITI = GMI × Front-End DTI %
Max P&I (front) = Max PITI − Monthly Tax − Monthly Insurance
Back-End Limit:
Max Total Debt = GMI × Back-End DTI %
Max P&I (back) = Max Total Debt − Existing Monthly Debts − Monthly Tax − Monthly Insurance
Binding Max P&I = MIN(Max P&I front, Max P&I back)
Max Loan Amount (from P&I using amortization):
r = (Annual Rate / 100) / 12
n = Loan Term in Years × 12
Max Loan = Max P&I × [(1 − (1+r)^(−n)) / r]
Max Home Price = Max Loan Amount + Down Payment
Monthly Tax = (Home Price × Property Tax Rate / 100) / 12
Monthly Insurance = Annual Insurance / 12
Total Monthly Housing (PITI) = P&I + Monthly Tax + Monthly Insurance> Note on iteration: Because property tax and insurance are based on home price, and home price depends on the loan limit, the calculation uses the final home price to compute PITI components — this is the standard lender approach (they use the actual purchase price, not a circular estimate).
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Worked Example
| Input | Value |
|---|---|
| Gross Annual Income | $90,000 |
| Monthly Debts | $500 |
| Down Payment | $30,000 |
| Rate | 6.8% |
| Term | 30 years |
| Property Tax | 1.1% |
| Insurance | $1,500/yr |
| DTI Limits | 28% / 36% |
Step 1 — Gross Monthly Income: $90,000 ÷ 12 = $7,500/mo
Step 2 — Monthly tax & insurance on estimated price (~$310,000):
Step 3 — Front-End P&I budget:
$7,500 × 28% = $2,100 − $284 − $125 = $1,691
Step 4 — Back-End P&I budget:
$7,500 × 36% = $2,700 − $500 − $284 − $125 = $1,791
Step 5 — Binding limit: MIN($1,691, $1,791) = $1,691 (front-end binds)
Step 6 — Max loan: r = 0.068/12 = 0.005667; n = 360
Loan = $1,691 × [(1−(1.005667)^−360) / 0.005667] ≈ $258,600
Step 7 — Max home price: $258,600 + $30,000 = ~$288,600
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Limitations & When NOT to Use This Calculator
Frequently asked questions
What is the 28/36 rule?
What does PITI stand for?
Does this calculator include PMI?
Can I use a back-end DTI higher than 36%?
What mortgage rate should I use in 2026?
How does down payment affect my maximum home price?
Why does the front-end limit sometimes bind instead of back-end?
Does this include HOA fees?
What credit score do I need to get approved?
How accurate is this estimate compared to an actual lender pre-approval?
Sources & references
- Freddie Mac Primary Mortgage Market Survey — Freddie Mac (2026)
- HUD Housing Counseling Program — U.S. Department of Housing and Urban Development (2026)
- Consumer Financial Protection Bureau — Debt-to-Income Calculator Guidance — CFPB (2026)
- Federal Housing Finance Agency — Conforming Loan Limits 2026 — FHFA (2026)
Methodology & trust
Calculadora de finanzas revisada por el equipo editorial de Hacé Cuentas, contrastada con Freddie Mac Primary Mortgage Market Survey, según nuestra política editorial y metodología.
Última revisión: June 20, 2026. Los parámetros se verifican periódicamente con las fuentes citadas.
Calculations run 100% in your browser. We do not store or transmit your data.
Indicative results. For critical decisions, consult a professional.
Rodríguez, M. (2026). Home Affordability Calculator. Hacé Cuentas. https://hacecuentas.com/home-affordability-by-income-calculator
Contenido bajo licencia CC-BY 4.0 — reutilizable citando la fuente con enlace a Hacé Cuentas.