Enter your income before tax, your monthly debt payments and your down payment. See the highest home price that fits the 28/36 rule many lenders use.
PITI means principal, interest, taxes and insurance. This is an estimate from the 28/36 rule; a lender also looks at your credit score, savings and loan type.
The number your lender comes back with isn't random. It's based on two ratios that almost every conventional loan underwriter uses: the front-end ratio (housing costs only) and the back-end ratio (all debt). Knowing these lets you predict your approval range before you ever talk to a bank.
The front-end ratio says your total housing payment — principal, interest, property taxes, and insurance (PITI) — should not exceed 28% of your gross monthly income. The back-end ratio says all your monthly debt payments combined (housing + car + student loans + minimum credit card payments) should not exceed 36% of gross income.
| Yearly income | Max monthly PITI (28%) | Max all debt (36%) | Approx. home price |
|---|---|---|---|
| $60,000 | $1,400 | $1,800 | ~$200,000 |
| $80,000 | $1,867 | $2,400 | ~$274,000 |
| $100,000 | $2,333 | $3,000 | ~$349,000 |
| $120,000 | $2,800 | $3,600 | ~$424,000 |
| $150,000 | $3,500 | $4,500 | ~$536,000 |
Assumes a 7.28% rate, 30-year term, 20% down, 1.1% property tax, $1,800/year insurance and no other debt.
Here's what kills affordability for most buyers: existing monthly debt payments. Once your debts push you past the 36% limit, a $500/month car payment reduces your housing budget by $500/month. On a 30-year mortgage at 7.28%, every $500/month of payment supports roughly $73,000 of borrowing. That car payment can cost you about $75,000 in home buying power.
The 2026 FHFA conforming loan limit is $832,750 for most US counties. Freddie Mac's 30-year fixed average was 7.28% for the week of Oct 1, 2026; your own rate depends on your credit score and down payment. FHA loans allow 3.5% down with a 580+ credit score but add MIP (mortgage insurance premium) that never goes away for most borrowers — factor this into affordability calculations.