Mortgage Affordability Calculator

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

Dreaming of a new home in 2026? Our Mortgage Affordability Calculator helps you quickly determine the maximum mortgage you can realistically afford based on your income and existing debts, ensuring you don't overextend yourself in a competitive market where the average home price is projected to reach $450,000.

This calculator employs the widely accepted 28/36 Debt-to-Income (DTI) rule. It first calculates your maximum allowable housing payment (28% of gross monthly income) and then your maximum total debt payment (36% of gross monthly income), using the lower of these two to establish your affordable mortgage payment.

Remember, this calculation provides a ceiling; lenders also consider credit scores, down payments, and interest rates, which are projected to hover around 6.5% in mid-2026. Don't forget to factor in property taxes and homeowner's insurance, which significantly impact your actual monthly housing costs.

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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