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How to Calculate Home Affordability

Determine how much home you can afford using the 28/36 debt-to-income rule.

The Formula

maxMortgage = min(income*0.28, income*0.36 - debts)

The home affordability formula uses the mathematical relationship: maxMortgage = min(income*0.28, income*0.36 - debts). Each variable in the formula represents a measurable quantity that affects the final result.

Step-by-Step Method

  1. 1Identify all input values needed for the home affordability calculation.
  2. 2Substitute your known values into the formula: maxMortgage = min(income*0.28, income*0.36 - debts).
  3. 3Perform the arithmetic operations in the correct order (PEMDAS/BODMAS).
  4. 4Check that your result has the correct units and is within a reasonable range.
  5. 5Verify using the interactive Home Affordability Calculator to confirm your answer.

Related Topics

home affordabilitymortgagedebt-to-income28% rule

Use the Interactive Calculator

Skip the manual math — get instant results with our free Home Affordability calculator.

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