Find out how much house you can afford. This free home affordability calculator uses the 28/36 rule to turn your income, debts and down payment into a target home price and max payment.
Estimate based on the 28/36 rule. Lenders also weigh credit, employment and reserves.
How the Home Affordability Calculator Works
Knowing how much house you can afford starts with how much monthly payment your income can support. This calculator applies the 28/36 rule to your income and debts to find your maximum monthly payment, subtracts an estimate for taxes and insurance, and converts what’s left into a loan amount and total home price based on your rate and loan term.
Formula: Max payment = min(monthly income × 28%, monthly income × 36% − monthly debts). Principal & interest = max payment − tax & insurance. Loan amount = (P&I) × [1 − (1 + r)^−n] ÷ r, where r is the interest rate ÷ 12 and n is the loan term in months. Home price = loan amount + down payment.
- Annual household income — converted to a monthly figure and used for both the 28% and 36% limits.
- Monthly debts — recurring debt payments that reduce the 36% back-end limit.
- Down payment — cash added on top of the loan amount to reach the total home price.
- Interest rate — the mortgage rate used to convert a monthly payment into a loan amount.
- Tax + insurance / mo — an estimated monthly cost subtracted before sizing the loan payment.
- Loan term — 30, 20, or 15 years, which changes how much loan a given payment can support.
Example Scenarios
| Annual Income | Monthly Debts | Down Payment | Rate (30-yr) | Home Price You Can Afford |
|---|---|---|---|---|
| $90,000 | $300 | $40,000 | 6.5% | ≈$308,900 |
| $60,000 | $0 | $10,000 | 7.0% | ≈$182,900 |
| $120,000 | $800 | $60,000 | 6.0% | ≈$443,600 |
| $45,000 | $200 | $5,000 | 6.5% (15-yr) | ≈$102,600 |
| $75,000 | $1,500 | $20,000 | 6.5% | ≈$83,300 |
Home Affordability Calculator FAQ
What is the 28/36 rule this calculator uses?
It’s a lending guideline capping monthly housing costs at 28% of gross monthly income (front-end) and total debt payments, including housing, at 36% (back-end). The calculator uses whichever of the two limits is more restrictive for your numbers.Why did the calculator use my debt limit instead of my income limit?
When your monthly debts are high enough, the 36% back-end limit becomes lower than the 28% front-end limit, so the calculator caps your affordable payment at whichever of the two limits turns out tighter.Does the home price include property taxes and insurance?
The “tax + insurance” field is subtracted from your max monthly payment before the loan amount is calculated, so the resulting home price reflects a payment that leaves room for those ongoing costs, not just principal and interest.How does changing the loan term affect affordability?
A shorter loan term, like 15 years instead of 30, raises the monthly principal and interest owed on the same loan amount, which lowers how large a loan your set monthly payment can support and shrinks the affordable home price.Will a lender actually approve me for this exact amount?
Not necessarily. Lenders also weigh your credit score, employment history, and cash reserves beyond the 28/36 rule, so this figure is a planning estimate rather than a mortgage pre-approval or guaranteed loan offer.What counts as “monthly debts” in this calculator?
Recurring obligations like car loans, student loans, and credit card minimum payments — not utilities, groceries, or other everyday living expenses that lenders typically don’t include in debt-to-income calculations.Related Calculators
Once you have a target price range, you can work out the exact monthly mortgage payment for that loan amount, estimate closing costs due at signing, or check your overall debt-to-income ratio before applying with a lender.