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Mortgage Payment Calculator
Calculate your monthly mortgage payment including principal, interest, property taxes, homeowners insurance, and PMI with verified 2026 statutory rates.
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Home Affordability Calculator
Estimate your maximum affordable home price and monthly mortgage payment using standard lender debt-to-income (DTI) rules. Compare Conventional 28/36, FHA 31/43, and VA 41% underwriting guidelines.
Quick Answer: To determine how much house you can afford in 2026, mortgage underwriters evaluate debt-to-income (DTI) ratios comparing your gross pre-tax income to prospective housing expenses and recurring monthly debts. Under the standard conventional 28/36 rule, your complete housing payment (PITI, HOA, and PMI) cannot exceed 28% of gross monthly income, and total debts cannot exceed 36%. For a household earning $100,000 annually ($8,333.33/month) with $500 in monthly debts, a 20% down payment, and a 6.5% 30-year fixed rate, the 28% front-end cap binds at $2,333.33 per month, yielding a maximum purchase price of $372,454.64 with a $297,963.71 loan.
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Last reviewed: October 2026
Calculation Methodology: Home Affordability Calculator
Mathematical Formula
Front Cap = Gross Monthly × Front % | Back Cap = (Gross Monthly × Back %) − Monthly Debts | Max Payment = min(Front Cap, Back Cap) | Max Loan = P&I Budget × [(1 − (1 + r)^−n) / r] | Max Price = Max Loan ÷ (1 − Down %)
1. Gross Monthly Income: Gross Monthly = Annual Gross Income ÷ 12.
2. Debt Caps: Front-End Cap = Front Ratio × Gross Monthly. Back-End Cap = (Back Ratio × Gross Monthly) − Other Monthly Debts. Max Housing Payment = min(Front Cap, Back Cap).
3. Principal & Interest (P&I) Budget: P&I Budget = Max Housing Payment − (Property Tax ÷ 12) − (Insurance ÷ 12) − HOA − PMI.
4. Maximum Loan Capacity: Max Loan = P&I Budget × [(1 − (1 + r)−n) ÷ r], where r = annual interest rate ÷ 12 and n = loan term in months.
5. Maximum Home Price: Max Price = Max Loan ÷ (1 − Down Payment Fraction). Down Payment Dollar = Max Price × Down Payment Fraction.
Underwriting Guidelines & Program Parameters
- Conventional Conforming Loans (28/36 Rule): Standard Fannie Mae and Freddie Mac underwriting caps monthly housing costs (principal, interest, property taxes, hazard insurance, HOA dues, and PMI) at 28% of gross income, and total debt obligations at 36%. If monthly non-mortgage debts exceed 8% of income, the 36% back-end cap binds first.
- FHA Loans (31/43 Rule): Under HUD Handbook 4000.1, standard Federal Housing Administration guidelines permit up to 31% front-end and 43% back-end DTI ratios. With documented compensating factors (such as verified cash reserves, minimal debt increases, or substantial residual income), lenders may approve higher back-end ratios up to 50% on automated or manual underwriting.
- VA Loans (41% Back-End Guideline): Per Department of Veterans Affairs loan guidance, VA financing enforces no front-end housing cap, utilizing a 41% total DTI guideline. VA underwriting also mandates residual income minimums (uncommitted monthly cash flow required for food, healthcare, and living expenses based on family size and US geographic region). Staying within 41% is an eligibility guideline, not a guarantee of loan approval.
- User-Input Non-Quoted Rates: All mortgage interest rates, property taxes, homeowners insurance premiums, HOA dues, and PMI fees are entered directly by the user. PlainFig quotes no proprietary rates or lender pricing.
- Lender Overlays & Estimates: This tool provides mathematical eligibility estimates based on published guidelines. Actual mortgage approval requires verification of credit score, employment history, assets, property appraisal, and individual lender overlays.
Disclaimer: Informational calculation only. Does not constitute a mortgage loan pre-qualification, pre-approval, or commitment to lend under RESPA or TILA regulations.
Verified Worked Example (Benchmark)
Commissioned Verification Benchmarks:
Benchmark A — Conventional Conforming ($100k Salary, $500 Debts, 20% Down, 6.5% Rate, 30 Yrs):
Gross Monthly: $100,000 ÷ 12 = $8,333.33 · Front Cap (28%): $2,333.33 · Back Cap (36%): $2,500.00 ($3,000 − $500).
Binding Max Housing Payment: $2,333.33 (front-end limit binds).
Escrows: Tax $300.00/mo ($3,600/yr) + Ins $150.00/mo ($1,800/yr) = $450.00/mo.
P&I Budget: $2,333.33 − $450.00 = $1,883.33.
Maximum Loan: $297,963.71 · Maximum Home Price: $372,454.64 (Down Payment: $74,490.93).
Gross Monthly: $100,000 ÷ 12 = $8,333.33 · Front Cap (28%): $2,333.33 · Back Cap (36%): $2,500.00 ($3,000 − $500).
Binding Max Housing Payment: $2,333.33 (front-end limit binds).
Escrows: Tax $300.00/mo ($3,600/yr) + Ins $150.00/mo ($1,800/yr) = $450.00/mo.
P&I Budget: $2,333.33 − $450.00 = $1,883.33.
Maximum Loan: $297,963.71 · Maximum Home Price: $372,454.64 (Down Payment: $74,490.93).
Benchmark B — FHA Loan ($75k Salary, $400 Debts, 10% Down, 6.5% Rate, 30 Yrs):
Gross Monthly: $75,000 ÷ 12 = $6,250.00 · Front Cap (31%): $1,937.50 · Back Cap (43%): $2,287.50 ($2,687.50 − $400).
Binding Max Housing Payment: $1,937.50 (front-end limit binds).
Escrows: Tax $200.00/mo ($2,400/yr) + Ins $100.00/mo ($1,200/yr) = $300.00/mo.
P&I Budget: $1,937.50 − $300.00 = $1,637.50.
Maximum Loan: $259,070.22 · Maximum Home Price: $287,855.80 (Down Payment: $28,785.58).
Gross Monthly: $75,000 ÷ 12 = $6,250.00 · Front Cap (31%): $1,937.50 · Back Cap (43%): $2,287.50 ($2,687.50 − $400).
Binding Max Housing Payment: $1,937.50 (front-end limit binds).
Escrows: Tax $200.00/mo ($2,400/yr) + Ins $100.00/mo ($1,200/yr) = $300.00/mo.
P&I Budget: $1,937.50 − $300.00 = $1,637.50.
Maximum Loan: $259,070.22 · Maximum Home Price: $287,855.80 (Down Payment: $28,785.58).
Benchmark C — Published Article Example ($75k Salary, $0 Debts, Conventional 28/36):
Gross Monthly: $75,000 ÷ 12 = $6,250.00.
Front Cap (28%): $1,750.00 · Back Cap (36%): $2,250.00 − $0 = $2,250.00.
Binding Max Housing Payment: $1,750.00 (front-end limit binds). Matches PlainFig Article 1 published figure exactly.
Gross Monthly: $75,000 ÷ 12 = $6,250.00.
Front Cap (28%): $1,750.00 · Back Cap (36%): $2,250.00 − $0 = $2,250.00.
Binding Max Housing Payment: $1,750.00 (front-end limit binds). Matches PlainFig Article 1 published figure exactly.
Primary Statutory Sources & Authorities
- HUD Handbook 4000.1: FHA Single Family Housing Policy Handbook — Statutory guidelines defining FHA 31/43 front-end and back-end debt-to-income underwriting thresholds.
- VA Pamphlet 26-7: Department of Veterans Affairs Lenders Handbook — Official underwriting guidance governing VA 41% debt-to-income ratios and regional residual income minimums.
- Consumer Financial Protection Bureau (CFPB) Qualified Mortgage Rule — Federal standards governing Ability-to-Repay (ATR) requirements and debt-to-income underwriting parameters.
Frequently Asked Questions
Primary source guidance on rules, formulas, and regulations.
The 28/36 rule is a foundational mortgage underwriting standard used by conventional lenders. It mandates that your total monthly housing expenses (principal, interest, property taxes, homeowners insurance, HOA fees, and PMI) should not exceed 28% of your gross monthly income (front-end ratio), and your total monthly debt payments (housing expenses plus student loans, car financing, minimum credit card payments, and child support) should not exceed 36% of gross income (back-end ratio). The lower of the two calculations determines your maximum allowable monthly payment.
FHA loans insured by the Federal Housing Administration feature more generous baseline debt-to-income limits of 31/43 (up to 31% of gross income devoted to housing costs and up to 43% for total recurring debt), compared to the 28/36 rule for conventional loans. Furthermore, when applicants present documented compensating factors—such as substantial cash reserves, minimal housing payment increases, or strong verified residual income—FHA automated underwriting systems can approve back-end ratios up to 45% or 50%.
VA home loans guaranteed by the Department of Veterans Affairs do not enforce a front-end housing cost ceiling. Instead, underwriters evaluate a single 41% back-end debt-to-income guideline covering all debt obligations combined. In addition, VA underwriting strictly enforces residual income minimums: the amount of net discretionary cash left over each month after paying taxes, debt, and housing costs to cover food, clothing, and transportation, varying based on family size and geographic region.
Lenders count recurring monthly contractual liabilities appearing on your credit report. This includes auto loan payments, minimum required credit card payments, student loan installments, personal and installment loans, and legally binding alimony or child support obligations. Discretionary living expenses—such as groceries, utilities, auto insurance, streaming subscriptions, and cell phone bills—are not included in the back-end DTI debt calculation.
Yes. When you put down less than 20% on a conventional loan, lenders require Private Mortgage Insurance (PMI) to mitigate default risk. PMI typically costs between 0.3% and 1.5% of the original loan balance annually ($50 to $250+ per month). Because PMI is an escrowed housing obligation, it directly reduces your available principal and interest budget, thereby reducing your maximum affordable purchase price.
No. This calculator provides mathematical estimates of purchasing capacity based on published underwriting ratios and user-supplied data. An official lender pre-approval requires credit score evaluation, hard credit inquiries, verified W-2s or tax returns, bank asset verification, and individual lender risk overlays.
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