Home Affordability Calculator
How much house can you afford? Enter your income, debts, down payment, and expected rate. We apply the 28/36 rule lenders use and solve for the maximum home price — including taxes, insurance, HOA, and PMI.
Your home-buying budget
Monthly payment breakdown
How it works
Lenders don't decide your price range from the home — they decide it from your debt-to-income (DTI) ratios. The front-end ratio divides your total monthly housing payment by gross monthly income; most conventional loans want it at or under 28%. The back-end ratio adds your other monthly debts (car, student loans, credit-card minimums) and wants the total at or under 36%.
This calculator takes the lower of the two housing budgets those ratios allow, then works backward to a home price: it solves for the price where principal & interest (at your rate and term) plus property tax, insurance, HOA, and estimated PMI exactly fill that budget. Less than 20% down triggers a PMI estimate of about 0.5% of the loan per year — one reason a bigger down payment buys you more house, not just a smaller loan.
Watch which ratio limits you: if the back-end ratio is the binding one, paying down a car loan can raise your budget more than saving a few thousand extra for the down payment. The results show both DTI figures so you can see exactly where you stand.
Frequently asked questions
What is the 28/36 rule for home affordability?
The 28/36 rule is the guideline most mortgage lenders use: your total housing payment should not exceed 28% of gross monthly income (front-end ratio), and all monthly debts combined should not exceed 36% (back-end ratio).
What counts as monthly debt in the DTI calculation?
Car loans, student loans, credit-card minimum payments, personal loans, and child support count. Utilities, groceries, subscriptions, and income taxes do not.
Does the calculator include property tax and insurance?
Yes. The max home price is solved from your full monthly housing budget including principal and interest, property tax, homeowner's insurance, HOA dues, and PMI when your down payment is under 20%.
Why is my affordable price lower than what a lender pre-approved?
Pre-approvals often stretch to the maximum ratio a program allows — sometimes above 28/36 with compensating factors like strong credit or reserves. This calculator uses the conservative standard guideline so the payment fits your budget comfortably.
How can I increase how much house I can afford?
The three biggest levers: pay down monthly debts (helps the back-end ratio), save a larger down payment (lowers the loan and may remove PMI), and improve your credit score to qualify for a lower interest rate.
Is the result a guarantee I can get a mortgage?
No. This is an estimate based on the standard 28/36 guideline. Actual approval depends on your credit score, employment history, the loan program, and the lender's full underwriting.
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