Home Affordability Calculator
Estimate how much house you can afford. Enter your income, monthly debts, and down payment, and this tool applies the 28/36 rule lenders use.
How affordability is estimated
Lenders often use the 28/36 rule. Your total monthly housing payment should stay under 28% of your gross monthly income, and all of your monthly debt payments together should stay under 36%. This calculator takes the lower of those two limits as your housing budget, then works backward, subtracting estimated property tax, insurance, and HOA, to find the largest loan and home price that fit.
Example
On a $90,000 salary ($7,500 a month) with $500 in other monthly debts, the 28% limit is $2,100 and the 36% limit is $2,200. Using the lower $2,100 housing budget at 6.5% over 30 years, with $40,000 down, you could afford a home priced around $300,000. Lowering your other debts or raising your down payment increases what you can afford.
Frequently asked questions
How much house can I afford?
A common guideline is the 28/36 rule: spend no more than 28% of your gross monthly income on housing (your full mortgage payment) and no more than 36% on total debt, including the mortgage plus car loans, student loans, and credit cards. This calculator finds the highest home price that keeps you inside both limits.
What is the 28/36 rule?
The 28/36 rule is a lending guideline. The front-end ratio caps housing costs at 28% of gross monthly income. The back-end ratio caps all monthly debt payments at 36%. Lenders use ratios like these to judge whether a loan is affordable, though exact limits vary by loan program.
Does this include taxes and insurance?
Yes. The estimate includes principal, interest, property tax, and homeowners insurance (PITI), plus any HOA dues you enter, because lenders count your full monthly housing cost, not just principal and interest.
Is a pre-approval the same as this estimate?
No. This is a quick guideline. A mortgage pre-approval is a lender reviewing your income, credit, and debts to tell you an amount they will actually lend. Use this to get in the right range, then get pre-approved before you shop.