What this calculator shows you
- DTI Analysis
- Calculate your debt-to-income ratio
- Down Payment Options
- See how down payment affects affordability
- Monthly Payment Estimate
- Get realistic payment projections
- Comfort Zone
- Find your ideal price range
The 28/36 Rule
Lenders typically want your housing costs under 28% of gross income and total debt under 36%. This is called the front-end and back-end ratio. Staying within these limits helps ensure affordability.
What Lenders Allow vs. What You Should Spend
Just because you qualify for a large mortgage does not mean you should take it. Consider your other goals: retirement savings, travel, children, emergency fund. A smaller mortgage gives you more financial flexibility.
Questions people ask
What percentage of income should go to housing?
The traditional rule is 28% of gross income for housing costs (PITI: principal, interest, taxes, insurance). However, many financial experts recommend 25% or less for more financial flexibility.
How much down payment do I need?
20% avoids PMI (private mortgage insurance), but the median first-time buyer put down 10% (NAR 2025 Profile of Home Buyers and Sellers). FHA loans allow as little as 3.5%. However, less down payment means higher monthly payments.
Education only, not personalized financial, tax or investment advice. Results are estimates based on the numbers you enter; real returns vary and losses happen.