🔑 Home Affordability Calculator
Enter your income, monthly debts and down payment to see the home price, loan and monthly payment you can afford under the 28/36 rule.
Home price you can afford
$335,287
Max loan
$275,287
Max housing payment
$2,240/mo
You’re limited by the housing costs (28% front-end) guideline. This is the affordability ceiling — many buyers deliberately borrow less for breathing room.
Uses the lender 28/36 rule: housing costs should stay under about 28% of gross income (front-end), and all debt payments under 36% (back-end). The tool takes the lower of the two, subtracts estimated taxes/insurance/HOA, and works back to the loan and home price. Lenders vary and may allow higher ratios; this is a conservative guideline, not a pre-approval or financial advice. 🔒 In your browser.
How the home affordability calculator works
Lenders judge affordability with the 28/36 rule: your housing payment should stay under about 28% of gross monthly income (the front-end ratio), and all your debt payments together under 36% (the back-end ratio). The tool takes the lower of those two limits, subtracts estimated taxes, insurance and HOA to find the affordable principal-and-interest payment, works back to the loan amount, and adds your down payment for the maximum home price.
This is a conservative planning guideline, not a pre-approval — lenders vary and some allow higher ratios, especially with strong credit or reserves. It also uses gross (pre-tax) income, so the "affordable" payment may still feel tight against take-home pay; many buyers deliberately borrow below the ceiling. Educational information, not financial advice.
Frequently asked questions
How much house can I afford?
A common guideline is a home price around 3–4× your gross annual income, but it depends on your down payment, other debts and rates. The 28/36 rule ties it to your income: housing under 28% of gross monthly income, total debts under 36%. Enter your figures for a specific number.
What is the 28/36 rule?
A lender rule of thumb: spend no more than 28% of gross monthly income on housing (the front-end ratio) and no more than 36% on all debt payments combined (the back-end ratio). It keeps the total debt burden manageable.
What is debt-to-income (DTI)?
The share of your gross monthly income that goes to debt payments. Lenders use it to gauge how much more you can borrow — the "36" in the 28/36 rule is a back-end DTI limit. Lower DTI means more borrowing room.
Does a bigger down payment let me afford more?
Yes — it adds directly to the home price you can buy (price = affordable loan + down payment), reduces or removes PMI, and lowers the monthly payment on the same house. The tool adds your down payment to the max loan for the home-price ceiling.
Should I borrow the maximum I can afford?
Often not. The 28/36 ceiling is a limit, not a target, and it uses pre-tax income — borrowing below it leaves room for savings, emergencies and lifestyle. This tool shows the ceiling; how close you get to it is a personal choice. Not financial advice.
Educational information, not financial advice. These calculators use standard formulas with the figures you enter; results are illustrations, not guarantees. For decisions about your money, consult a qualified, regulated financial professional.