Home Affordability Calculator — How Much House Can You Afford?
Instead of starting with a home price and working backward, this calculator starts with what lenders actually check: your income and existing debts. It applies the standard 28/36 debt-to-income guideline to find the maximum monthly payment — and therefore home price — your budget can support.
Uses the common 28/36 guideline: housing costs ≤28% of gross income, total debts ≤36%. Your actual approval depends on credit score, lender policy and local rules.
Uses the standard 28/36 debt-to-income guideline. Actual lending limits vary by lender, loan type and credit profile — get a real pre-approval before house hunting.
How to use this tool
- Enter your gross (pre-tax) monthly income and any other monthly debt payments.
- Enter your available down payment, the interest rate you expect, and the loan term.
- Add an estimate for property taxes and insurance (varies by location — check comparable listings).
- Press Calculate to see the maximum home price your budget supports under standard lending guidelines.
Frequently asked questions
What is the 28/36 rule?
A standard lending guideline: your total housing costs (mortgage principal, interest, taxes, insurance) shouldn't exceed 28% of gross monthly income, and your total debt payments (housing + car loans, student loans, credit cards) shouldn't exceed 36%. Many lenders allow higher ratios for strong credit profiles, but 28/36 is the conservative benchmark.
Why does this show a lower number than my mortgage pre-approval?
Pre-approvals often use more generous DTI limits (43-50% back-end ratio is common for conventional loans) than the conservative 28/36 used here. This calculator intentionally uses the more cautious guideline — treat the pre-approval number as a ceiling, not a target.
Does this include property taxes and insurance?
Yes — enter your best estimate for monthly taxes and insurance (PITI = principal, interest, taxes, insurance). These vary hugely by location; check what similar homes in your target area actually pay, not a national average.
Should I actually spend up to the maximum this shows?
Not necessarily. This is the ceiling a lender is likely to approve, not necessarily what's comfortable for your specific life — leave room for maintenance, HOA fees, higher utility bills than renting, and general life flexibility.