Home Affordability, Rent vs. Buy, Rental Cap Rate & Global Mortgage Calculator

Compute 28/36 DTI home affordability, Rent vs. Buy comparison, Rental Cap Rate/NOI, and Canadian semi-annual compounding.

Maximum Affordable Home Price (28/36 DTI Rule)
$424,392
Max Monthly PITI: $2,800.00 • Max Loan: $354,392 + $70,000 down
Qualifying Monthly PITI (28/36) $2,800.00
Monthly Buy PITI vs. Rent $2,800.00 vs $2,400.00
Rental Property Cap Rate & NOI 5.7% ($24,180/yr)
Canadian Semi-Annual P&I Eq. $2,219.92
Inputs
USD / yr
Total pre-tax annual household income.
USD / mo
Auto loans, student loans, and minimum credit card payments.
USD ($)
Cash available for down payment.
% / yr
30-year fixed mortgage interest rate.
USD / mo
Monthly rent for a comparable home.
USD / mo
Used to compute investment property NOI and Cap Rate.
Results & Graph
Maximum Affordable Home Price (28/36 DTI Rule)
$424,392
Max Monthly PITI: $2,800.00 • Max Loan: $354,392 + $70,000 down
Qualifying Monthly PITI (28/36)
$2,800.00
Total back-end DTI: 33%
Monthly Buy PITI vs. Rent
$2,800.00 vs $2,400.00
Rental Property Cap Rate & NOI
5.7% ($24,180/yr)
Canadian Semi-Annual P&I Eq.
$2,219.92

Gross Monthly Income Allocation (28/36 DTI Standard)

Qualifying Housing Payment vs. Existing Debt vs. Remaining Income
Graph 1 • Gross Monthly Income Underwriting Allocation (28/36 Rule) Max housing PITI vs. existing debt obligations vs. remaining income
Max Housing PITI: $2,800/moExisting Monthly Debts: $500/moRemaining Gross Income: $6,700/mo Max Housing PITI $2,800/mo Existing Monthly Debts $500/mo Remaining Gross Income $6,700/mo
Graph 2 • Down Payment Equity vs. Qualifying Loan Principal Share of maximum home purchase price
MAX HOME PRICE $424.4k Max Qualifying Mortgage ($354.4k) 354.4k (83.5%) Down Payment Equity ($70.0k) 70.0k (16.5%)
Graph 3 • How Mortgage Interest Rates Shift Your Maximum Buying Power Calculated across 5.0% to 8.0% 30-year fixed rates
0 263.1k 526.3k 5.0%: 487,271 487.3k 5.0% 5.5%: 464,513 464.5k 5.5% 6.0%: 443,613 443.6k 6.0% 6.5%: 424,392 424.4k 6.5% 7.0%: 406,689 406.7k 7.0% 7.5%: 390,359 390.4k 7.5% 8.0%: 375,275 375.3k 8.0%
Summary: Max affordable home price is $424,392 with a qualifying monthly PITI of $2,800.00.
Summary: On a $120,000 gross income ($10,000/mo) with $500.00/mo in existing debts, the 28/36 qualifying rule allows up to $2,800.00/month for housing, supporting a $354,392 mortgage and a $424,392 home price with your $70,000 down payment. As a rental property generating $3,100.00/month, estimated NOI is $24,180/yr (5.7% Cap Rate).

Formula & Mathematical Methodology: 28/36 DTI Underwriting Limit, Cap Rate & Canadian Semi-Annual Compounding

Max PITI = min(0.28 × Grossmo,   0.36 × Grossmo − Debts),   Cap Rate = NOIProperty Price
MaxPITI = min(0.28 × GrossMo, 0.36 × GrossMo − Debts); CapRate = NOI / Price; r_CA_mo = (1 + APR/2)^(1/6) − 1
  • 28% / 36%: Front-end housing ratio (28%) and back-end total debt-to-income ratio (36%)
  • NOI: Annual Net Operating Income before debt service

Rounding: Rounded to nearest dollar/cent.

Worked Example: $120,000 Income, $500/Mo Debts, $70,000 Down Payment at 6.5%

Find maximum qualifying home price under standard 28/36 underwriting.

  1. 28% front-end limit = $2,800/mo; 36% back-end limit minus $500 debts = $3,100/mo → Qualifying PITI = $2,800/mo.
  2. Allocating 80% ($2,240/mo) to P&I at 6.5% over 360 months supports a $354,392 loan.
  3. Adding $70,000 down payment gives a maximum home price of $424,392.
Result: Max home price is $424,392 ($2,800/mo qualifying PITI).

Frequently Asked Questions

Why do Canadian mortgages have a slightly lower payment for the same stated rate?

By law (Interest Act of Canada), fixed-rate Canadian mortgages compound semi-annually (twice per year) rather than monthly, resulting in a slightly lower effective monthly rate.

Finance & Investing • Real Estate & Property Analysis Guide

How to Use the Home Affordability, Rent vs. Buy, Rental Cap Rate & Global Mortgage Calculator: Practical Guide & Visual Analysis

Determine how much house you can afford based on gross income and existing debts (28/36 rule), evaluate investment property Net Operating Income (NOI) and Cap Rate, and compare US vs. Canadian semi-annual mortgage compounding. Whether you are researching house affordability calculator, rent vs buy calculator, debt to income ratio calculator, rental property cap rate calculator, canadian mortgage calculator, this interactive tool helps you calculate maximum affordable home price under the 28/36 DTI rule, compare buying vs. renting, compute rental property Cap Rate/NOI, and check Canadian semi-annual mortgage payments.

Interpreting the 3 Custom Visual Graphs & Key Outputs

As you adjust Gross Annual Household Income, Existing Monthly Debt Payments, Available Down Payment Cash, Annual Mortgage Interest Rate, the calculator immediately computes Maximum Affordable Home Price ($), Qualifying Monthly PITI (28/36 Rule), Rental Property Cap Rate & NOI, Canadian Semi-Annual Mortgage Equivalent and updates all three domain-specific SVG charts in real time. Instead of relying on a single static figure, you can inspect the primary domain diagram, component breakdown, and multi-point trajectory curve to see how changing your inputs shifts the final result. Use the Compare (up to 3 scenarios) button to evaluate side-by-side variations before making a decision.

Real-World Benchmark & Planning Tips (United States, Canada, UK & Global)

In our benchmark scenario ($120,000 Income, $500/Mo Debts, $70,000 Down Payment at 6.5%), Max home price is $424,392 ($2,800/mo qualifying PITI). Keep in mind that allocates 80% of qualifying PITI to principal & interest and 20% to property taxes and insurance. For related calculations in Finance & Investing, explore Mortgage Calculator, Loan & EMI Calculator, ROI Calculator (Return on Investment).