Home Affordability Calculator
Use the classic 28/36 rule to find the maximum home price you can afford.
How to use
- Enter your annual income and current monthly debt payments.
- Enter your down payment, mortgage rate, and term.
- Click Calculate to see your maximum affordable home price and monthly payment.
Estimates only — not financial advice. The 28/36 rule is a lender guideline; property taxes, insurance, and HOA fees reduce what you can spend on principal & interest. Verify important decisions with a qualified professional.
What Is a Home Affordability Calculator?
A home affordability calculator works out the maximum home price your income can support, using the same debt-to-income guidelines lenders apply when they decide how much to approve. Instead of falling in love with a listing and hoping the numbers work, you start from your income, your existing debts, and your down payment, and arrive at a price ceiling that a lender is likely to respect. This calculator uses the classic 28/36 rule, a long-standing benchmark in US mortgage lending.
The 28/36 rule has two halves. The "front-end" ratio says housing costs — mortgage payment, property taxes, insurance — should not exceed about 28% of your gross monthly income. The "back-end" ratio says all monthly debt payments combined, including the new housing cost, should not exceed about 36% of gross income. Lenders calculate both and effectively approve the smaller of the two limits, which is why existing debts like car loans and student loans directly reduce the home price you qualify for.
How to Use the Home Affordability Calculator
- Enter your annual gross income (before taxes).
- Enter your total monthly debt payments — car loans, student loans, credit card minimums, and similar obligations, but not rent or utilities.
- Enter the down payment you have saved, plus the mortgage rate and term you expect.
- Click Calculate to see the maximum home price the 28/36 guideline supports for your situation.
Why Your Debts Matter as Much as Your Income
Two buyers with identical salaries can qualify for very different home prices because of the back-end ratio. A $600 monthly car payment consumes a large share of the 36% allowance, leaving less room for a mortgage payment. This is why paying off a consumer debt before house hunting can raise your affordable price more than the same money added to your down payment — it relaxes the ratio that is actually binding. The calculator lets you test that: zero out a debt and watch the maximum price move.
Tips Before You House Hunt
- Treat the result as a lending ceiling, not a budget. A payment a lender approves can still leave your monthly life uncomfortably tight.
- Remember taxes and insurance are part of the housing cost in the 28% test — in high-tax areas they can claim several hundred dollars of the allowance.
- Getting pre-approved by a lender gives the definitive figure, since they also weigh your credit history and employment.
What is the 28/36 rule?
It is a traditional lending guideline: no more than 28% of gross monthly income should go to housing costs, and no more than 36% to all debts combined, including housing. Modern lenders sometimes allow higher ratios with strong credit and reserves, but 28/36 remains a prudent personal benchmark.
Which debts count in the back-end ratio?
Recurring debts that appear on your credit report: auto loans, student loans, credit card minimum payments, personal loans, and similar obligations, plus the new housing payment itself. Everyday bills like utilities, groceries, and subscriptions are not counted by lenders, though they matter for your real budget.
Does a bigger down payment raise my maximum price?
Yes, in two ways: the cash adds directly to the purchase price, and a smaller loan means a smaller monthly payment, which fits more easily inside the ratios. Enter different down payment amounts to see how much ceiling each additional amount buys you.
Is this the same as a lender's pre-approval?
No. This is an estimate based on income ratios alone. A pre-approval also verifies your income, assets, credit score, and employment, and a lender may approve more or less than the guideline suggests. Use this calculator for planning and house-hunting ranges, and a pre-approval for certainty.