Affordability Calculator
Find out how much house you can afford based on your income, debt, and financial goals.
Enter Your Financial Details
Property tax rates are state-level effective averages from Tax Foundation (June 2026). County and city rates may differ.
Maximum Home Price
$212,963.91
Based on your financial situation
Payment Details
Key Factors
Front-End Ratio
28%
Max housing expense
Back-End Ratio
36%
Max total debt
How We Calculate Affordability
Income
We start with your monthly gross income and apply standard debt-to-income ratios to determine your maximum affordable monthly payment.
Debt-to-Income
Lenders typically use a 28/36 rule: 28% of income for housing, 36% for total debt.
Loan Details
We factor in the interest rate, loan term, property taxes, and insurance to calculate the total monthly payment.
Understanding Debt-to-Income Ratio
Your debt-to-income (DTI) ratio is a key factor lenders use to determine how much you can borrow. It compares your monthly debt payments to your monthly gross income.
A lower DTI ratio indicates you have more disposable income to cover mortgage payments. Most lenders prefer a DTI ratio of 36% or less.
DTI Categories
Excellent: <20%
Low debt burden
Good: 20-36%
Manageable debt
Fair: 37-43%
Higher risk
Poor: >43%
May need to reduce debt
Frequently Asked Questions
What is the 28/36 rule?
The 28/36 rule is a guideline lenders use to assess mortgage affordability. It states that your housing expenses should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36%.
What counts as monthly debt?
Monthly debt includes credit card payments, car loans, student loans, personal loans, child support, and any other recurring monthly payments. It does not include utilities, groceries, or other living expenses.
How does my credit score affect affordability?
A higher credit score can qualify you for a lower interest rate, which reduces your monthly payment and increases the amount you can afford. A lower credit score may result in a higher interest rate or may limit the amount you can borrow.
Should I include PMI in my calculations?
Yes, if your down payment is less than 20%, you should include PMI in your monthly payment calculation. Our calculator automatically includes PMI when needed.
What is a good debt-to-income ratio?
A DTI ratio of 36% or lower is considered good. Lenders typically prefer ratios below 43%, though some government-backed loans allow higher ratios with compensating factors.
Related Tools & Resources
Mortgage Calculator
Calculate your monthly mortgage payment based on your home price and loan details.
PMI Calculator
Calculate Private Mortgage Insurance costs for low down payment loans.
How Much House Can I Afford?
A comprehensive guide to understanding home affordability.
Refinance Calculator
See if refinancing could help you save on your monthly payment.
Property Tax Data Sources
Rates shown are state-level effective property tax rates — the average percentage of home value paid annually in property taxes. When you select a state, we pre-fill this rate into the calculator. County, city, and school-district rates can differ significantly within the same state.
- Tax Foundation — Primary source for state effective property tax rates, based on U.S. Census Bureau property tax collections and housing value data.
- U.S. Census Bureau — American Community Survey — Underlying housing value and property tax data used by researchers and policy organizations to compute effective rates.
- National Association of Realtors (NAR) — Cross-referenced for regional housing cost context; local assessor offices remain the authoritative source for your exact rate.
Data last reviewed: June 2026
These figures are estimates for educational and planning purposes only — not tax or legal advice. Your actual property tax depends on assessed value, exemptions, and local mill rates. Consult your county assessor or a tax professional for precise figures.
Disclaimer: This affordability calculator is for educational purposes only and should not be considered financial advice. The results are estimates based on the information you provide.
Information is for educational purposes only. Always consult with a qualified mortgage professional before making financial decisions.