Finance · Real Estate

Home Affordability Calculator

Find out how much house you can realistically afford from your income, monthly debts, and down payment — using the lender-standard 28/36 rule. Drag the sliders and every number updates instantly.

Annual household income $90,000

Down payment $40,000

Mortgage rate (APR) 6.50%

Loan term

Monthly debts ($)

Tax + insurance (%/yr)

Maximum home price

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The most you can afford within the 28/36 rule.

Maximum loan amount

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Est. monthly payment

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Principal & interest

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Down payment %

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Monthly budget allocation

How much house can you afford?

Flat illustration of a house with a green roof balanced on one side of a scale against a stack of gold coins — representing how much home your income and debts can support. — Affordability is a balance: your income and debts on one side, the home's full monthly cost on the other.

Lenders judge affordability with the 28/36 rule. Your total housing payment should stay under about 28% of gross monthly income (the front-end ratio), and all your debt payments combined — housing plus car loans, student loans, and credit cards — should stay under about 36% (the back-end ratio). This calculator finds the home price that fits within both limits.

What's included in the payment

The monthly figure here covers principal, interest, property taxes, and insurance (often called PITI). Taxes and insurance are estimated as a percentage of the home's value. Your real number may also include private mortgage insurance (PMI) if you put down less than 20%, and HOA dues where applicable.

Tip: Just because a lender approves you for a certain amount doesn't mean you should spend it all. Leaving room in your budget for maintenance, savings, and life keeps homeownership enjoyable rather than stressful.

The power of a bigger down payment

A larger down payment increases the home price you can afford, lowers your monthly payment, and — once you cross 20% down — eliminates PMI. It also reduces the total interest you'll pay over the life of the loan.

Frequently asked questions

What is the 28/36 rule?

It's a lender guideline for affordability. Keep your housing payment under 28% of gross monthly income, and your total debt payments under 36%. Staying within both ratios improves your odds of approval and keeps payments manageable.

Does this include property taxes and insurance?

Yes. The estimated monthly payment covers principal, interest, property taxes, and homeowners insurance. You set taxes and insurance as a percentage of home value. It does not include PMI or HOA dues, which can add to the real cost.

How much should I put down on a house?

Putting down 20% lets you avoid private mortgage insurance and lowers your payment, but many buyers put down less using conventional, FHA, or VA loans. A larger down payment raises the price you can afford and cuts long-term interest.

Why is my approved amount higher than what I should spend?

Lenders approve based on ratios, not your full financial picture. They don't see your savings goals, lifestyle, or future plans. It's wise to buy below your maximum so you have room for maintenance, emergencies, and saving.

How does my mortgage rate affect affordability?

A higher rate increases your monthly payment, which lowers the home price that fits within the 28/36 limits. Even a one-point rate change can shift your maximum affordable price by tens of thousands of dollars.

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Written & reviewed by Chase Bennett, President of CalcHeadquarters

Every calculator is built from published formulas and authoritative sources, then independently checked for accuracy before it goes live. Last updated July 2026. Read our editorial policy & methodology.