Mortgage Affordability Calculator
Find out how much mortgage you can realistically afford using the 28/36 DTI rule lenders actually use.
How Mortgage Affordability Is Calculated in 2026
Lenders use two DTI (debt-to-income) ratios to determine how much mortgage you qualify for. The front-end ratio limits your housing costs (P&I, taxes, insurance) to 28% of gross monthly income. The back-end ratio limits all debt payments combined — including your mortgage, student loans, car loans, and credit cards — to 36% of gross income. The more restrictive of the two limits your maximum payment.
With the national median household income around $80,000 and rates at 6.8%, the 28% rule allows a monthly housing payment of about $1,867. After subtracting estimated taxes and insurance, the available P&I is roughly $1,590 — supporting a loan of approximately $237,000. Adding a 20% down payment brings maximum purchase price to around $296,000 for median income earners.
The Gap Between Qualification and Comfort
Lenders will often approve you for the maximum allowed under their guidelines, but many financial planners recommend the more conservative “25% of take-home pay” rule for housing costs. A mortgage at the 28% gross income ceiling can feel tight when you add property taxes, insurance, maintenance, and life's other financial demands.