Home Affordability Calculator

Calculate your maximum home price using the 28/36 DTI rule. See mortgage payments, PMI, and total cost at different down payment levels.

Annual Household Income ($)

Monthly Debts ($)

Down Payment ($)

Interest Rate (%)

Property Tax Rate (%)

Monthly Insurance ($)

Loan Term (Years)

Maximum Home Price

$285,681

Based on 28/36 rule with 21.0% down

Stretch

Monthly Payment

$1,862.14

Loan Amount

$225,681

Front-End DTI

26.3%

Back-End DTI

31.9%

Monthly Payment Breakdown

Principal & Interest

$1,426.45

Property Tax

$285.68

Insurance

$150.00

Total Cost Over 30 Years

Down Payment

$60,000

Total Interest

$287,843

Total Property Tax

$102,845

Grand Total

$730,369

Estimated Closing Costs

Low Estimate (2%)

$5,714

Typical (3.5%)

$9,999

High Estimate (5%)

$14,284

Closing costs typically include appraisal, title insurance, attorney fees, origination charges, and prepaid items. Budget $5,714 to $14,284 in addition to your down payment.

Down Payment Comparison

Down %	Down Payment	Max Home	Monthly	PMI
5%	$12,387	$247,730	$1,983.32	$98.06
10%	$25,954	$259,545	$1,983.32	$97.33
15%	$40,881	$272,542	$1,983.32	$96.53
20%	$60,541	$302,703	$1,983.33	None

PMI is estimated at 0.5% of the loan amount annually and applies when down payment is less than 20%.

Affordability by Income Bracket

Annual Income	Max Home (20% down)	Max Housing / Mo
$50,000	$156,855	$1,100.00
$75,000	$264,177	$1,750.00
$100,000	$360,492	$2,333.33
$125,000	$456,806	$2,916.67
$150,000	$553,121	$3,500.00
$200,000	$745,750	$4,666.67

Assumes 20% down payment, 6.5% rate, 30-year term, 1.2% property tax, and $150.00/mo insurance. Uses the 28/36 rule with your current debt level.

The 28/36 Rule

Front-End Ratio (28% max)

26.3%

Housing costs should not exceed 28% of gross monthly income.

Back-End Ratio (36% max)

31.9%

Total debt payments (housing + other) should not exceed 36% of gross monthly income.

How to Use Home Affordability Calculator

1Enter your annual household income
2Add monthly debt payments
3Set down payment and interest rate
4Review maximum affordable home price

Frequently Asked Questions

What is the 28/36 rule?▾

The 28/36 rule states that you should spend no more than 28% of your gross monthly income on housing costs and no more than 36% on total debt payments including housing.

How much down payment do I need for a house?▾

While 20% is ideal (avoids PMI), many loans allow 3-5% down. FHA loans require as little as 3.5% down payment.

What is PMI and when is it required?▾

Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It typically costs 0.5-1% of the loan amount annually and protects the lender against default.

About Home Affordability Calculator

Calculate your maximum home price using the 28/36 DTI rule. See mortgage payments, PMI, and total cost at different down payment levels.

NexTool's Home Affordability Calculator is completely free to use with no sign-up required. Your data is processed directly in your browser and never sent to our servers, ensuring complete privacy and instant results.