Tax Calculator

Paycheck Tax Calculator

Free Tool28/36 Rule

Mortgage Affordability Calculator 2026

See exactly how much house you can afford based on your salary, down payment, and existing debts — using the 28/36 rule lenders use to qualify borrowers. Free, no sign-up.

By Sammy S. · Founder · AuthorUpdated for 2026

Max home price
Monthly PITI
Front & back-end DTI
Down payment breakdown

How it works

1

Enter your salary & debts

Gross annual income plus any monthly debt payments (car, student loans, credit cards).

2

Set down payment & rate

Choose down payment %, interest rate, and loan term (15, 20, or 30 years).

3

Get your max home price

Instant max home price, monthly PITI, DTI ratios, and required down payment.

How to use this mortgage affordability calculator

Enter your gross annual salary, monthly debts, down payment percent, interest rate, and loan term. The calculator applies the 28/36 rule (front-end and back-end DTI) to estimate your max home price, monthly PITI, and required down payment.

Income & loan terms

Salary, debts, rate, and DTI limit

Income

Bonuses, rental income, etc.

Debts & loan terms

Car, student loans, credit cards, etc.

Typical 1–2%

~0.35–1%

Max home price

Based on your salary, debts, and loan terms

$259,679

~$51,936 down (20%)~$1,750/mo PITI

Loan amount

$207,743

Principal & interest

$1,382/mo

Tax + insurance

$368/mo

Front / back DTI

28% / 36%

28% rule (front-end): Housing payment (PITI) should not exceed 28% of gross monthly income.

36% rule (back-end): Total debts (housing + other) should not exceed 36% of gross income. We use the stricter of the two limits.

Rough Max Price by Salary
20% down · ~7% rate · 28% rule
$60,000~$190K–$235K
$75,000~$235K–$290K
$100,000~$315K–$390K
$150,000~$475K–$585K

Estimates only — use the calculator for your exact number.

The 28/36 Rule
28%Max housing payment (PITI) as % of gross monthly income — front-end DTI
36%Max total debts (housing + all other) as % of gross income — back-end DTI

We apply the stricter of the two limits. Some lenders allow up to 43% back-end — use the toggle in the calculator.

Related tools
US Paycheck CalculatorMortgage Refinance CalculatorDTI CalculatorNet to Gross Calculator

How We Calculate Affordability

28% Rule — Front-End DTI
Your monthly housing payment (PITI: principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income. Example: $6,000 income × 28% = $1,680 max PITI.
36% Rule — Back-End DTI
Your total monthly debts (housing + car, student loans, credit cards, etc.) should not exceed 36% of gross income. We use the stricter of the two limits so you stay within standard lender guidelines.
Salary to Max Home Price Reference
28% front-end DTI · 0 existing debts · 20% down · ~7% rate · 30-year term · Range reflects state property tax variation (0.8%–2.5% total tax+insurance)
Annual SalaryMax PITI (28%)Est. Max Home Price
$50,000$1,167/mo~$160K–$195K
$60,000$1,400/mo~$190K–$235K
$75,000$1,750/mo~$235K–$290K
$90,000$2,100/mo~$285K–$350K
$100,000$2,333/mo~$315K–$390K
$120,000$2,800/mo~$380K–$470K
$150,000$3,500/mo~$475K–$585K
$200,000$4,667/mo~$630K–$780K

Why use a mortgage affordability calculator?

A mortgage affordability calculator shows your max home price and monthly PITI so you can shop with a realistic budget. Lenders use the 28/36 rule (and sometimes up to 43% back-end DTI for conventional loans), so running this before you apply helps you see what you qualify for and whether it makes more sense to pay down existing debt or save a larger down payment. Pair it with our US Paycheck Calculator to confirm take-home pay and our DTI Calculator for a full debt-to-income picture.

Current mortgage rates (May 28, 2026): 6.53% — and how a 1% shift changes what you can afford
Freddie Mac PMMS, May 28, 2026 · First American Real House Price Index

6.53%

30-yr fixed (May 28, 2026)

↓ from 6.89% a year ago

5.87%

15-yr fixed (May 28, 2026)

↓ from 6.03% a year ago

~6.05%

2026 low (February)

Lowest since 2022

How rate changes affect your max home price (same $2,000/month P&I budget, 30-year term)

RateMax loan (P&I only)vs. 6.53% today
5.53% (−1%)~$373,000+$43,000
6.03% (−0.5%)~$356,000+$26,000
6.53% (today)~$330,000—
7.03% (+0.5%)~$305,000−$25,000
7.53% (+1%)~$282,000−$48,000

A 1% rate increase reduces buying power by ~10% (at fixed income). Per First American: a 25-basis-point increase reduces buying power by ~$11,000. The salary table on this page uses ~7% — re-run the calculator with 6.53% for a more accurate current estimate. Rates are variable; always use an actual lender quote. Sources: Freddie Mac PMMS (May 28, 2026); First American Real House Price Index March 2026.

2026 loan limits: conforming at $832,750, FHA floor $541,287 — and which loan type fits your situation
FHFA (Nov 25, 2025) · HUD FHA (Dec 11, 2025) · Effective January 1, 2026

The FHFA increased the 2026 conforming loan limit to $832,750 (up from $806,500 in 2025 — a 3.26% increase tied to home price appreciation). Loans above the baseline conforming limit are jumbo loans with stricter underwriting. Here's how the main loan types compare for 2026:

Loan typeMin downMin FICO2026 limit
Conventional (conforming)3–5%620+$832,750 baseline
FHA3.5% (580+ FICO) / 10% (500–579)500+$541,287 floor / $1,249,125 ceiling
VA0%No minimum (lender varies)No statutory limit
USDA0%640+ typicalRural areas only
Jumbo10–20%+700+ typicalAbove $832,750

Key 2026 limit thresholds

Conforming baseline (most counties): $832,750 — loans at or below this can be bought by Fannie Mae/Freddie Mac

Conforming high-cost ceiling: $1,249,125 — applies in high-cost metros (NYC, LA, SF, Seattle, etc.)

FHA floor (low-cost areas): $541,287 | FHA high-cost ceiling: $1,249,125

FHA also allows up to 57% DTI (vs. 43–50% for conventional) — useful if you have high existing debt. MIP (mortgage insurance premium) is required regardless of down payment size for most FHA loans.

Sources: FHFA press release Nov 25, 2025; HUD Mortgagee Letter Dec 11, 2025; availablemax.com 2026 loan limits.

The lock-in effect: why inventory is still tight and what it means for your affordability budget
U.S. Bank Housing Market Analysis · Freddie Mac Chief Economist · 2026

One of the least-discussed factors in 2026 home affordability is the mortgage rate lock-in effect: millions of existing homeowners hold mortgages at 3–4% rates from 2020–2022 and are unwilling to sell, because buying again means giving up a sub-4% rate and taking on a 6.5%+ loan. This keeps housing inventory below normal levels, which sustains home prices despite higher rates.

What the lock-in effect means for buyers

  • • Fewer homes for sale → less negotiating power for buyers in many markets
  • • Prices stay elevated even as payment costs rise
  • • Affordability improves primarily through rate declines, not price declines
  • • Pending home sales rose 3 months in a row (as of May 2026 per Freddie Mac) — pent-up buyer demand is real

Where buyers do have more leverage (2026)

  • • Sun Belt new construction (Austin, Tampa, Phoenix, Denver): excess supply, builder concessions, rate buydowns
  • • ~40% of rental listings and some for-sale listings offer concessions (free rent, rate buydowns)
  • • “Accidental landlords” (failed sellers renting instead) adding single-family inventory
  • • Affordability improved 7.8% year over year in March 2026 (First American RHPI)

Practical takeaways for affordability planning

Re-run at current rates

6.53% (May 2026) changes your max price vs. the ~7% in the salary table. Use the calculator with your actual rate.

Ask about rate buydowns

In soft markets, builders often pay 2-1 buydowns (reducing your rate 2% year 1, 1% year 2) — effectively lowering your PITI for the first two years.

Refinance when rates drop

Buying now at 6.5%+ and refinancing if rates fall to 5–6% is a common strategy. Break-even on refinance costs is typically 18–36 months.

Sources: Freddie Mac PMMS (May 28, 2026) — “pending home sales up 3 months in a row”; U.S. Bank Housing Market Analysis (2026); First American Real House Price Index March 2026; Zillow Rental Market Report March 2026.

Frequently Asked Questions
Common questions about mortgage affordability and the 28/36 rule.

Use the 28/36 rule: housing (PITI) should not exceed 28% of gross monthly income, and total debts should not exceed 36%. Example: $75,000 salary = $6,250/month; 28% = $1,750 max PITI, which at current ~7% rates with 20% down supports a home of about $235K–$290K (varies by state property tax). Enter your salary and debts in the calculator above for your exact number.

28%: Housing costs (PITI) should not exceed 28% of gross monthly income (front-end DTI). 36%: Total monthly debt payments (housing + all other debts) should not exceed 36% of gross income (back-end DTI). Many lenders allow up to 43% back-end for conventional loans, but 36% is a safer, conservative target.

For a $300K loan at ~7% over 30 years, P&I is about $2,000/month. With taxes and insurance (~$400–500), PITI is ~$2,500. At 28% front-end you need gross monthly income of about $9,000+ ($108K+ annually) with no other debt. With other debts, you need higher income.

$100K salary = $8,333/month gross. 28% = $2,333 max PITI. With 20% down, ~7% rate, and 30-year term, that supports a home price of about $315,000–$390,000 at current rates (range reflects state property tax variation). With car payments, student loans, or credit cards, your affordable price is lower. Use the calculator for your situation.

Lenders use gross income (before taxes) for the 28/36 rule. Use your annual salary or total taxable income before deductions when using this calculator.

PITI = Principal, Interest, Taxes, and Insurance — your total monthly housing payment. Principal and interest are the loan payment; taxes are property taxes; insurance is homeowners insurance. Lenders use PITI for the 28% front-end DTI limit.

As of May 28, 2026, the Freddie Mac PMMS 30-year fixed rate averages 6.53% (15-year: 5.87%). Rates hit ~8% in late 2023, fell to a 2026 low of ~6.05% in February, and have risen back above 6.5%. The salary-to-home-price table above uses ~7% — re-run the calculator with your actual rate for a precise estimate. A 1% rate change shifts your max affordable home price by approximately 10%. Source: Freddie Mac PMMS May 28, 2026.

2026 conforming baseline: $832,750 for one-unit properties in most counties (high-cost ceiling: $1,249,125). FHA floor: $541,287; high-cost ceiling: $1,249,125. Loans above the conforming limit are jumbo loans with stricter underwriting. FHA requires 3.5% down with 580+ FICO. VA and USDA allow 0% down for eligible borrowers. Sources: FHFA (Nov 25, 2025); HUD (Dec 11, 2025).

A 1% rate increase reduces max home price by ~10% at the same income and payment cap. Example: $2,000/month P&I budget at 6% supports ~$333K loan; at 7% the same budget supports ~$302K — $31K less. A 0.5% change moves the monthly payment by ~$80–$130 on common loan amounts. Per First American: a 25 bps increase reduces buying power by ~$11,000. Re-run this calculator when rates change to get an updated number. Sources: First American Real House Price Index March 2026; Freddie Mac PMMS.

With $75,000 salary, gross monthly income is $6,250. At 28% front-end DTI, max PITI is about $1,750. With 20% down, ~7% rate, 30-year term, and no other debts, that typically supports a home price of roughly $235,000–$290,000 depending on property tax and insurance rates in your state. Existing car payments, student loans, or credit card minimums reduce the affordable price. Use the calculator and enter your debts for a personalized estimate.

With $150,000 salary, gross monthly income is $12,500. At 28% front-end, max PITI is about $3,500. With 20% down, ~7% rate, 30-year term, and no other debts, that supports roughly $475,000–$585,000 depending on local tax and insurance. In high-cost metros (higher taxes/insurance or higher rates), the range skews lower. Enter your rate and debts above for a tighter estimate.

Conventional loans often allow 3–5% down; FHA allows 3.5% with a 580+ FICO (10% if 500–579); VA and USDA can allow 0% for eligible borrowers. Putting less than 20% down on a conventional loan usually means private mortgage insurance (PMI), which raises your monthly payment and can reduce how much house you afford at the same DTI. This calculator lets you set any down payment percent so you can compare 5%, 10%, and 20% scenarios.

Yes in practice. Private mortgage insurance (typical when conventional down payment is under 20%) adds to your monthly housing cost alongside principal, interest, taxes, and insurance. Lenders include PMI in the housing payment used for DTI. This calculator estimates PITI from tax and insurance rates but does not auto-add PMI—if you’ll put less than 20% down, leave extra room in your budget or lower your target home price.

Yes. Those payments count toward back-end DTI (total debts ÷ gross income). Under the 36% rule, every dollar of existing monthly debt is a dollar less available for housing. Example: $6,250/month gross with $500 in other debts leaves about $1,750 for total debts at 36%—so only ~$1,250 for housing after the $500, which can be stricter than the 28% front-end alone. Enter all minimum monthly debt payments in the calculator.

A 30-year term usually maximizes how much house you can buy because the monthly principal and interest payment is lower. A 15-year loan has a higher monthly payment, so your max home price drops, but you pay far less interest over the life of the loan and build equity faster. If your goal is the highest purchase price at a given income, choose 30 years; if your goal is lower lifetime cost and you can afford the payment, choose 15 years.

Many conventional loans target ~28% front-end and up to ~36–43% back-end DTI; 43% is a common conventional ceiling, and some programs allow higher with compensating factors (strong credit, reserves, residual income). FHA can allow higher DTI (sometimes up to ~57% with strong compensating factors). This calculator defaults to 36% back-end (conservative) with a 43% toggle for conventional-style estimates. Your lender’s automated underwriting and full application decide the final limit.

Property tax and insurance are part of PITI. Higher annual tax or insurance rates raise the monthly housing payment, so the same income supports a lower home price. That’s why the salary reference table shows a range: low-tax/low-insurance areas (combined ~0.8% of home value) allow higher prices than high-tax areas (~2.5% combined). Adjust the tax and insurance % fields to match your county for a better estimate.

Usually no. The calculator shows a lender-style maximum, not a comfort budget. Buying at the max leaves little room for maintenance, HOA dues, utilities, childcare, emergencies, or retirement savings. Many buyers target a payment well below 28% of gross—especially if they’ll have HOA fees, PMI, or irregular income. Use the max as a ceiling, then shop below it.

With no other monthly debts, the front-end 28% rule usually binds first: max PITI ≈ 28% of gross monthly income. Example: $100,000 salary → $8,333/month → about $2,333 max PITI → roughly $315K–$390K home with 20% down at ~7% (state tax/insurance variation). If you later add a car loan or student loan payment, re-run the calculator—the back-end limit may become the binding constraint.

It depends. FHA’s lower down payment (3.5%) and more flexible DTI can help if you have limited cash or higher debts, but FHA mortgage insurance (MIP) raises the monthly payment and often lasts longer than conventional PMI. Conventional loans with 20% down avoid PMI and can offer lower rates for strong credit, which may support a higher price. Compare both scenarios in this calculator by changing down payment %, rate, and the 36% vs 43% DTI toggle—then confirm with a lender quote.

No. This calculator estimates max purchase price and monthly PITI from income and DTI rules. Closing costs (often ~2–5% of the loan or purchase price), prepaid taxes/insurance, and moving costs are separate cash needs. Plan liquid reserves beyond your down payment so you’re not house-poor at closing. Ask your lender for a Loan Estimate to size cash to close.

Yes. HOA or condo fees are typically included in the housing payment for DTI underwriting. They reduce how much principal and interest you can carry at the same income. If you’re looking at condos or planned communities, subtract estimated monthly HOA from your affordable PITI (or leave a buffer) so the calculator’s max price isn’t overstated.
Sources & references
Lending guidelines and rate references. We are not affiliated with any lender.

Results are estimates only. Consult a licensed lender for qualification. Rates and guidelines may change.

Related calculators

Mortgage Stress Test Canada

OSFI MQR + CMHC

Tax Calculator

Take-home pay

Rent vs Buy Calculator

Rent or buy break-even

Rent Affordability Calculator

Rent by income

DTI Calculator

Debt-to-income ratio

Proof of Income Letter

Income verification

Child Support Calculator

Support & housing

US Tax Calculator

Net income by state

Last updated: 2026-01-25 · Based on 28/36 rule and standard lender assumptions · For estimation only; consult a lender for qualification.