House Affordability Calculator
Estimate the maximum home price you can afford using the lender 28/36 debt-to-income rule.
How it works
Max payment = min(28% × income, 36% × income − debts); loan = (payment − taxes/insurance) inverted through the mortgage formula
The 28/36 rule is a standard lender guideline: your housing payment should stay under 28% of gross monthly income (front-end), and all debt payments including housing under 36% (back-end). This tool takes the tighter of those two limits, subtracts your tax and insurance estimate to leave room for principal and interest, then works backward to the loan and price you could support.
Worked example
On $90,000 income ($7,500/mo) with $500 of other monthly debt, the 28% cap ($2,100) is tighter than the 36% cap. After $350 for tax and insurance, $1,750 covers principal and interest — about a $277,000 loan at 6.5% over 30 years, or roughly a $317,000 home with $40,000 down.
Frequently asked questions
What is the 28/36 rule?
A guideline that housing costs should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. Many lenders allow higher back-end ratios, but 36% keeps payments comfortable.
Does a bigger down payment let me buy more?
Yes — the payment limits cap the loan, so every extra dollar of down payment adds directly to the price you can afford, and 20% down avoids PMI.
What costs are not included?
HOA dues, PMI, maintenance and utilities. If your target home has an HOA fee, treat it like part of the tax/insurance line.
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This is an educational estimate, not financial advice. Confirm figures with your lender, advisor or tax professional.