Home Affordability Calculator
Work out the home price and monthly payment you can afford from your income, debts, and down payment using the lender's 28/36 rule.
How much house can you afford?
Lenders lean on the 28/36 rule: housing under 28% of gross monthly income, and all debts under 36%. Enter your numbers and see the max home price and monthly payment that keeps you inside both.
Max home price
$308,958
Loan you qualify for plus your down payment
Monthly payment (PITI)
$2,100
Principal, interest, taxes, and insurance
Loan amount
$268,958
What the payment can finance
Housing budget cap
$2,100
The lower of the 28% and 36% limits
How it works
Lenders don't hand out loans based on a gut feeling — they run two ratios. The front-end ratio wants your housing payment (principal, interest, taxes, and insurance) to stay under 28% of your gross monthly income. The back-end ratio wants all your debts combined, housing included, under 36%. Whichever limit bites first is the one that sets your budget.
This tool takes the lower of those two caps, subtracts your monthly taxes and insurance, and works the amortization backward to find the loan that payment supports at your rate and term. Add your down payment and you've got the top home price you can realistically shop.
Say you earn $90,000 a year with $500 in monthly debts. Your gross monthly income is $7,500, so the 28% cap is $2,100 and the 36% cap leaves $2,200 for housing. The $2,100 wins, and after taxes and insurance the rest goes toward the loan. Nudge the down payment or rate and watch the ceiling move.
Frequently asked questions
What is the 28/36 rule exactly?
It's the DTI shorthand lenders use. Keep housing costs under 28% of gross monthly income (the front-end ratio), and keep all monthly debt payments together under 36% (the back-end ratio). Meet both and you're squarely in conventional-loan territory.
Why does my other debt shrink the house I can afford?
The 36% back-end cap counts your car, student loans, and card minimums against the same budget as your mortgage. Every $100 of monthly debt is roughly $100 less you can put toward a house payment, which trims the loan and the price.
Does a bigger down payment always help?
It raises the price you can reach dollar-for-dollar, since it adds straight on top of the loan you qualify for. Cross 20% down and you also dodge PMI, which frees up more of your payment for principal and interest.