Use the calculator below to estimate your maximum home price based on your income, debts, and down payment. Then explore real scenarios at different price points to find your comfort zone.
Adjust the sliders to see how much home you can afford based on the 28/36 rule.
Car payments, student loans, credit cards, etc.
You Can Afford Up To
$333,000
Limited by front-end (28%) DTI rule
Monthly Payment Breakdown
Front-End DTI
28.0%
Back-End DTI
34.0%
Estimates based on the 28/36 rule. Actual approval may vary.
Here's what it actually looks like to buy at different price points, assuming 10% down and a 6.75% interest rate on a 30-year fixed mortgage.
Down Payment (10%)
$30,000
Loan Amount
$270,000
Monthly Payment
$2,176.21
Min. Annual Income
$94,000
Principal & Interest
$1,751.21/mo
Est. Property Taxes
$300/mo
Est. Insurance
$125/mo
Income requirement assumes no other monthly debts and uses the 28% front-end DTI rule. Your actual requirement may vary based on debts, credit score, and loan program.
Down Payment (10%)
$40,000
Loan Amount
$360,000
Monthly Payment
$2,884.95
Min. Annual Income
$124,000
Principal & Interest
$2,334.95/mo
Est. Property Taxes
$400/mo
Est. Insurance
$150/mo
Income requirement assumes no other monthly debts and uses the 28% front-end DTI rule. Your actual requirement may vary based on debts, credit score, and loan program.
Down Payment (10%)
$50,000
Loan Amount
$450,000
Monthly Payment
$3,593.69
Min. Annual Income
$155,000
Principal & Interest
$2,918.69/mo
Est. Property Taxes
$500/mo
Est. Insurance
$175/mo
Income requirement assumes no other monthly debts and uses the 28% front-end DTI rule. Your actual requirement may vary based on debts, credit score, and loan program.
Down Payment (10%)
$60,000
Loan Amount
$540,000
Monthly Payment
$4,302.43
Min. Annual Income
$185,000
Principal & Interest
$3,502.43/mo
Est. Property Taxes
$600/mo
Est. Insurance
$200/mo
Income requirement assumes no other monthly debts and uses the 28% front-end DTI rule. Your actual requirement may vary based on debts, credit score, and loan program.
Your maximum home price isn't just about income. These six factors all play a role.
Lenders look at how much of your gross monthly income goes toward debt payments. The front-end DTI (housing costs only) should be 28% or less, and the back-end DTI (all debts) should be 36% or less. Some loan programs allow up to 43% or even 50% back-end DTI.
Your credit score affects the interest rate you qualify for, which directly impacts how much home you can afford. A higher score means a lower rate, a lower monthly payment, and more buying power.
The more you put down, the less you need to borrow — and the lower your monthly payment. A 20% down payment also eliminates the need for private mortgage insurance (PMI), saving you $100-$300+ per month.
Even a 0.5% rate difference significantly affects your buying power. At 6.5%, a $2,000/month payment supports a ~$316K loan. At 7.0%, that same payment only supports ~$300K.
These costs vary dramatically by location and property. In Massachusetts, tax rates range from about $10 to $25 per $1,000 of assessed value. Higher taxes and insurance reduce the amount you can borrow.
Condo fees, HOA dues, child support, student loans, and car payments all count toward your DTI. The fewer monthly obligations you have, the more mortgage you can qualify for.
The 28/36 rule is a time-tested guideline that lenders and financial advisors use to determine how much mortgage you can comfortably afford. It consists of two ratios:
28%
Front-End Ratio
Your total monthly housing costs (mortgage principal, interest, property taxes, and homeowners insurance — also known as PITI) should not exceed 28% of your gross monthly income.
Example: $8,333/mo gross income
Max housing: $2,333/mo
36%
Back-End Ratio
Your total monthly debt payments (housing costs plus car loans, student loans, credit card minimums, and any other debts) should not exceed 36% of your gross monthly income.
Example: $8,333/mo gross income
Max total debt: $3,000/mo
Important: The 28/36 rule is a guideline, not a hard limit. Many loan programs — including FHA, VA, and some conventional programs — allow higher DTI ratios (up to 43%, 50%, or even higher in some cases). Having a strong credit score, significant savings, or other compensating factors can help you qualify beyond these standard thresholds.
That said, just because you can qualify for a higher amount doesn't mean you should. The 28/36 rule exists because it leaves room in your budget for savings, unexpected expenses, and the things that make life enjoyable beyond your mortgage payment.
Common questions about home affordability
It depends on the home price, your debts, and interest rates. As a rough guideline using the 28% rule: for a $300K home (with 10% down), you need about $75,000-$80,000 in annual income. For a $400K home, roughly $95,000-$105,000. For a $500K home, about $120,000-$130,000. These assume minimal other debts — your actual requirement could be higher or lower.
The 28/36 rule is a guideline that says your monthly housing costs (including mortgage principal, interest, taxes, and insurance) should not exceed 28% of your gross monthly income (front-end ratio), and your total monthly debt payments should not exceed 36% of your gross monthly income (back-end ratio). Many lenders are flexible on these limits, especially for borrowers with strong credit or significant savings.
Yes, but your student loan payments count toward your debt-to-income ratio. If you pay $400/month in student loans, that reduces the mortgage payment you can qualify for by roughly the same amount. Income-driven repayment plans with lower monthly payments can help. FHA and some conventional programs have favorable rules for student loan calculations.
Beyond your down payment, budget for closing costs (2-5% of the home price), moving expenses, and an emergency fund (3-6 months of expenses). For a $400K home with 10% down, a comfortable savings target is: $40,000 (down payment) + $12,000 (closing costs) + $10,000 (reserves) = approximately $62,000. Programs exist for lower down payments, though.
Yes, if you apply jointly. Both incomes are combined for qualifying purposes. However, both credit scores and both debt loads are also considered. If one spouse has significant debt or a low credit score, it may make sense to apply with only the higher-scoring borrower — though you'll only qualify on one income. I can help you run the numbers both ways.
The calculator uses conservative guidelines. In practice, there are many ways to improve affordability: paying down debts to lower DTI, improving your credit score for a better rate, making a larger down payment, choosing a different loan program, considering adjustable-rate mortgages for a lower initial payment, or exploring down payment assistance programs. Let's talk through your specific situation.
Online calculators give you estimates. A real pre-approval gives you certainty. Let's sit down, look at your full financial picture, and get you a clear answer on what you can qualify for — so you can shop with confidence.