RealtyCopilot

Home Affordability Calculator

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

Your Finances

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Combined household income before taxes

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Car loans, student loans, credit cards, etc.

$
%

Maximum Home Price

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Based on the 28/36 rule

Max Monthly Payment

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P&I only

Front-End DTI

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Housing / income (max 28%)

Back-End DTI

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All debts / income (max 36%)

Monthly Income

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Gross (before taxes)

DTI Breakdown

Front-End (housing) —
Back-End (all debts) —

The 28/36 Rule Explained

The 28/36 rule is the standard guideline lenders use to determine how much mortgage debt a borrower can safely handle. Most conventional lenders follow these limits when approving loans.

Front-End Ratio (28%)

Your housing costs — including mortgage payment, property taxes, homeowners insurance, and HOA fees — should not exceed 28% of your gross monthly income. This is called the "front-end" or "housing" ratio. This calculator uses just P&I; add 20–25% to account for PITI.

Back-End Ratio (36%)

All of your monthly debt obligations — housing payment plus car loans, student loans, credit card minimums, and any other recurring debt — should not exceed 36% of your gross monthly income. This is the "back-end" or "total debt" ratio.

How to Improve Affordability

  • Pay down existing debts to lower your back-end DTI
  • Increase your down payment to reduce the loan amount
  • Improve your credit score to qualify for lower interest rates
  • Consider a longer loan term (30 yr) to lower monthly payments
  • Look for homes in lower-cost areas or wait for rates to drop

FHA vs. Conventional Limits

FHA loans allow higher DTI ratios — up to 31% front-end and 43% back-end — making them accessible to buyers with more debt. However, FHA loans require mortgage insurance premiums (MIP). VA and USDA loans have no strict DTI caps but lenders still evaluate overall creditworthiness.