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Mortgage Affordability Calculator

Find out how much home you can afford based on income and debts.

Last updated: June 13, 2026

Calculator

Annual Gross Income

Monthly Debt Payments

Down Payment

Interest Rate

Loan Term

Results

Home You Can Afford$363,785

Maximum Loan$313,785

Max Monthly Payment$1,983

Based on 28/36 rule

Front-End Ratio (28%)$1,983/mo

Max housing cost

Back-End Ratio (36%)$2,150/mo

After $400 monthly debts

How to Use This Calculator

1Enter your annual gross income.
2Enter your monthly debt payments.
3Enter your down payment amount.
4View your maximum home price based on the 28/36 rule.

Formula Explanation

Affordability is calculated using the 28/36 rule: housing costs should not exceed 28% of gross income, and total debt should not exceed 36%.

Max Housing Payment = Gross Monthly Income × 0.28 Max Total Debt = Gross Monthly Income × 0.36 Max Mortgage Payment = min(Max Housing, Max Total Debt - Existing Debt)

Variables:

Gross IncomeAnnual income before taxes

Monthly DebtsCar payments, student loans, credit cards, etc.

Down PaymentCash available for down payment

Worked Examples

$85,000 income, $400/month debts, $50,000 down

1. Monthly gross = $7,083
2. Max housing (28%) = $1,983
3. Max total debt (36%) = $2,550
4. Available for mortgage = $2,550 - $400 = $2,150
5. Using $1,983 (lower of the two)
6. Max loan ≈ $310,000 at 6.5%/30yr

Result: Maximum home price: ~$360,000

Why Use This Calculator

Know your budget before house hunting.
Based on industry-standard lending guidelines.
Accounts for existing debt obligations.
Prevents overextending your finances.

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Tips & Best Practices

The 28/36 rule is a guideline — aim lower for financial comfort.
Remember to budget for maintenance (1-2% of home value/year).
Your pre-approval amount may be higher than what you should actually spend.
Include property taxes and homeowner's insurance in your budget.

Common Mistakes to Avoid

❌ Using net income instead of gross income.

✅ Lenders use gross (pre-tax) income for qualification. But budget using net income for real-world planning.

❌ Maxing out the approved amount.

✅ Just because you qualify for $400K doesn't mean you should spend it. Leave room for savings, emergencies, and lifestyle.

Frequently Asked Questions

What is the 28/36 rule?

The 28/36 rule states that no more than 28% of gross income should go to housing costs, and no more than 36% to total debt including housing. It is a standard guideline used by most lenders.

Does my down payment affect how much I can afford?

Yes — a larger down payment reduces the loan amount, which lowers your monthly payment and may eliminate PMI. This effectively increases the home price you can afford.

What debts count toward the 36% limit?

Monthly minimums for car loans, student loans, credit cards, personal loans, and any other recurring debt obligations. Utilities, subscriptions, and insurance are typically not included.

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Disclaimer: This calculator is provided for informational and educational purposes only. Results are estimates and should not be used as a substitute for professional advice. RediCalc.com makes no guarantees regarding the accuracy, completeness, or suitability of any calculations. Always consult a qualified professional before making financial, health, construction, or other important decisions.

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