Home Affordability Calculator
Find out how much house you can afford from your income, debts, and down payment, using the 28/36 debt-to-income rule lenders use.
Before taxes, all borrowers combined
Car, student loan, card minimums, etc.
Home price you can afford
$335,797.00
Max monthly housing payment
$2,333.33
Loan amount
$285,797.00
Housing costs are capped at 28% of gross monthly income under this rule.
Estimated monthly payment at that price
| Principal and interest | $1,806.43 |
| Property tax | $307.81 |
| Home insurance | $100.00 |
| PMI | $119.08 |
| HOA | $0.00 |
| Total | $2,333.33 |
About this calculator
This calculator works backward from your finances to a home price. It uses the debt-to-income (DTI) guidelines lenders commonly apply: under the standard 28/36 rule, your total monthly housing cost (principal, interest, property tax, insurance, PMI, and HOA) shouldn't exceed 28% of your gross monthly income, and all your monthly debt payments combined, housing included, shouldn't exceed 36%. Whichever limit is tighter sets your maximum payment, and the calculator finds the highest price whose full monthly cost fits under it.
The rule you pick matters. The conservative 25/33 option leaves more room for savings and surprises; the 31/43 option reflects the higher ratios some loan programs, such as FHA loans, can allow. Being approved for a larger loan doesn't mean the payment will feel comfortable, since lenders look at gross income, not what's left after taxes, retirement contributions, childcare, and everything else.
Remember that the down payment isn't the only cash you need at closing: closing costs commonly run a few percent of the loan amount, and it's wise to keep an emergency fund after the purchase. Once you have a price range, the mortgage calculator gives a detailed breakdown and amortization schedule for a specific home.
Frequently asked questions
- What is the 28/36 rule?
- It's a long-standing lending guideline: spend no more than 28% of gross monthly income on housing costs (the front-end ratio), and no more than 36% on all debt payments including housing (the back-end ratio). It's a rule of thumb, not a law; actual loan limits depend on the loan program, your credit, and your lender.
- What counts as monthly debt?
- Recurring debt payments that show up on your credit report: car loans, student loans, minimum credit card payments, personal loans, and child support or alimony. Everyday expenses like groceries, utilities, and phone bills don't count toward DTI, even though they obviously affect what you can comfortably pay.
- Why does a bigger down payment raise the price so much?
- Every dollar of down payment adds a dollar of price without adding to the loan payment. And if your down payment reaches 20% of the price, PMI goes away, which frees up more of the monthly budget for the mortgage itself.
- Does the interest rate really change what I can afford?
- Yes, a lot. On a 30-year loan, a one-percentage-point rise in the rate increases the payment on the same loan amount by roughly 10% or more, so the maximum price at a fixed monthly budget falls noticeably. Try changing the rate to see how sensitive your result is.
- Should I buy at the maximum price shown?
- Not necessarily. The result is the upper limit of a common lending guideline, not a recommendation. Many people choose a lower price to keep room for savings, maintenance (often budgeted at around 1% of the home's value per year), and life changes.