Enter your income, debts, and down payment to see your estimated home buying budget and monthly payment breakdown.
Car loans, student loans, credit cards, etc.
Conservative Budget (28% front-end DTI)
$373,226
$373,226
$409,282
$60,000(16.1%)
PMI applies — your down payment is less than 20% of the home price. PMI adds $131/mo.
Based on the conservative (28%) estimate. Lender limits vary; many conventional loans allow up to 45–50% back-end DTI with strong credit.
Conservative (28%) estimate under adverse conditions
| Scenario | Max Home Price | Est. Monthly PITI | vs. Base |
|---|---|---|---|
| Rate +1% | $350,818 | $2,702 | -6.0% |
| Rate +2% | $330,528 | $2,717 | -11.4% |
| Income −10% | $339,575 | $2,413 | -9.0% |
| Income −20% | $305,923 | $2,144 | -18.0% |
For illustrative/educational purposes only. Actual amounts vary. Consult a qualified financial professional.
This calculator uses the 28/36 rule, the most widely cited guideline that mortgage lenders apply when evaluating borrowers. The "28" means your total monthly housing costs -- principal, interest, property taxes, homeowners insurance, HOA fees, and PMI -- should not exceed 28% of your gross monthly income. This is called the front-end debt-to-income (DTI) ratio. The "36" means that all of your monthly debt obligations combined, including housing plus car loans, student loans, and credit card minimums, should stay below 36% of gross monthly income. This is the back-end DTI ratio.
The calculator provides two budget estimates. The conservative estimate caps your housing costs at 28% of income, which is the safer threshold most financial advisors recommend. The stretch estimate uses the 36% back-end limit and subtracts your existing debts, showing the maximum housing payment you could qualify for under more aggressive underwriting. Many lenders will approve borrowers with back-end DTI ratios as high as 45-50% if credit scores are strong, but stretching to those limits leaves little room for unexpected expenses.
The stress test section shows how your buying power changes under adverse conditions such as rising interest rates or reduced income. If a 1-2% rate increase would push you into an uncomfortable budget, consider targeting a lower price point. Private mortgage insurance (PMI) is automatically included when your down payment is less than 20% of the home price, estimated at 0.5% of the loan amount annually. PMI typically drops off once you reach 20% equity.