Mortgage Affordability Calculator

Calculate maximum mortgage from income and debts. Uses 28/36 DTI rules.

By Konstantin Iakovlev · Updated April 2026 · Source: CFPB — Owning a Home

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Max Home Price

$350,369.85

Max Loan Amount

$290,369.85

Max Monthly Payment

$2,333.33

Affordability Details

Max Mortgage Payment (P&I)$1,883.33
Property Tax + Insurance + HOA$450.00
Total Housing Payment$2,333.33
Front-End DTI (housing)28.0%
Back-End DTI (total)34.0%
Limited byfront-end (28%)

Conservative Estimate (25% of Income)

Conservative Home Price$311,825.18
Conservative Loan Amount$251,825.18
Conservative Monthly P&I$1,633.33

Use the Mortgage Affordability Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Buying in 2026 means competing in a market where the average home price is projected to reach $450,000, and this tool pins down the largest mortgage you can sensibly carry given your income and current debts, so you stretch toward a home without stretching past your means.

The calculation rests on the well-established 28/36 Debt-to-Income (DTI) rule. It works out your maximum housing payment at 28% of gross monthly income and your maximum total debt payment at 36% of gross monthly income, then takes the lower of the two as the affordable mortgage payment.

Treat the result as a ceiling rather than a guarantee, because lenders also weigh credit scores, down payments, and interest rates, which are projected to hover around 6.5% in mid-2026. Property taxes and homeowner's insurance belong in the picture too, since both push your real monthly housing cost well above the loan payment alone.

Example: Sarah's 2026 Mortgage Affordability

  1. 1 Sarah earns $7,500 gross per month. Her existing monthly debts include a $300 car payment and a $150 student loan payment. She's looking at a home where property taxes and insurance are estimated at $400 per month.
  2. 2 Step 1: Calculate Maximum Housing Payment (28% DTI): $7,500 * 0.28 = $2,100. Step 2: Calculate Maximum Total Debt Payment (36% DTI): $7,500 * 0.36 = $2,700. Step 3: Subtract existing debts from total debt payment: $2,700 - $300 (car) - $150 (student loan) = $2,250 (maximum allowed total housing + other debt). Step 4: Determine the lower of the two housing limits: The $2,100 housing payment limit is lower than the $2,250 derived from the 36% rule.
  3. 3 Sarah's maximum allowable monthly principal and interest payment is $2,100 (from 28% DTI) minus her estimated $400 for property taxes and insurance, equaling $1,700.
  4. 4 With a projected 6.5% interest rate in 2026, Sarah can afford a maximum mortgage principal of approximately $267,000. This means she'll need a substantial down payment if she's aiming for that average $450,000 home.

Source: CFPB — Owning a Home · Last updated: April 2026

Frequently Asked Questions

How much house can I afford on a $100,000 salary?
Using the 28% front-end DTI rule, your maximum monthly housing payment is about $2,333. At 2026 rates (around 6-7%), with 10% down, you can afford approximately $325,000-$375,000 depending on property taxes, insurance, and other debts.
What is the 28/36 rule for mortgages?
The 28/36 rule says your monthly housing costs (mortgage, taxes, insurance) should not exceed 28% of gross monthly income, and total debt payments (housing plus car loans, student loans, credit cards) should not exceed 36%. Many lenders approve up to 43% total DTI, but 36% is the safer target.
How much should my down payment be?
Conventional loans require as little as 3-5% down. FHA loans require 3.5%. However, putting less than 20% down means paying PMI ($50-200+/month per $100,000 borrowed). A 20% down payment eliminates PMI and gives you the best rates and lowest monthly payment.

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