Methodology

How the Home Affordability Calculator works

How Tallivo turns your income, debts, and down payment into a maximum affordable home price using the lender 28/36 debt-to-income rule.

The formula

max housing = min( 28% × gross monthly income , 36% × gross monthly income − other debts )

Gross monthly income = annual income ÷ 12.
Front-end budget = 28% of gross monthly income (housing only).
Back-end budget = 36% of gross monthly income − your other monthly debt payments (housing + all debt).
Your monthly housing budget is the smaller of the two — that's the binding DTI limit.
We then solve for the highest home price whose full monthly payment (principal, interest, property tax, insurance, HOA, and PMI when under 20% down) fits that budget, using the same PITI math as the mortgage calculator.

28% front-end and 36% back-end ratios — common conventional guidelines; some loan programs allow higher.
A fixed rate for the full term; taxes and insurance as entered.
PMI is estimated at 0.75% of the loan per year while under 20% down.
This is a borrowing ceiling, not a recommendation — a comfortable budget is often lower.

Model reviewed 2025. Figures are planning estimates, not a loan offer — this is not financial advice.