US Home Affordability Calculator

Estimate a US housing budget with separate recurring costs and the 28/36 DTI planning guideline.

The 28/36 rule as a US planning aid

The model first limits monthly housing costs to 28% of gross income. Its second limit allows 36% for housing and existing debts combined. The lower amount sets the budget. These ratios are neither a statutory lending rule nor a loan approval.

How to use the calculator

Enter annual gross household income and monthly debt payments.
Add the down payment, quoted interest rate, and preferred loan term.
Estimate property tax, homeowners insurance, and HOA fees separately.
Calculate the budget and compare which DTI limit constrains the home price.

Example result interpretation

With $120,000 in annual income, the 28% limit is $2,800 per month. If property tax is $250 and insurance is $150, $2,400 remains for principal and interest. The rate, term, and down payment then determine the estimated home-price budget.

What the estimate does not include

Lenders use their own requirements and review credit, verified income, reserves, property, and loan program. Closing costs, maintenance, utilities, mortgage insurance, and changing tax or insurance bills are excluded unless you account for them in the inputs.

Frequently Asked Questions

What does the 28/36 rule mean?

As a planning aid, it limits housing costs to 28% of gross income and all monthly debts including housing to 36%. Lenders may use different requirements.

Which debts count toward DTI?

Common examples are required monthly auto, student, and installment loan payments plus minimum credit-card payments. Confirm the exact treatment with the lender.

Are property tax and homeowners insurance included?

Yes. The calculator subtracts your separate monthly estimates and any HOA fee from the housing budget. It does not add mortgage insurance or other costs automatically.

How does a larger down payment help?

At the same monthly financing budget, a larger down payment raises the estimated purchase price because less borrowing is required. Keep closing costs and reserves separate.

Why might a lender calculate a different budget?

Loan program, credit, reserves, income type, property, and lender-specific limits can change the result. Treat the rate and costs as scenarios, not an offer.

Is this result a mortgage preapproval?

No. It is only a budget estimate and does not replace a preapproval, Loan Estimate, or individual advice.