House Affordability Calculator
Lenders size a mortgage from two ratios: housing costs under 28% of gross monthly income, and all debt payments under 36%. Whichever limit bites first becomes your payment budget — this works backwards from that payment to the loan it supports, then adds your down payment to give a maximum home price.
- Accurate
- Real-time
- Easy to use
- 100% free
Maximum home price
$392,243
Maximum loan amount
$332,243
Details
Updates as you typeHousehold income before tax.
Car loans, student loans, and minimum card payments — not rent.
Summary
Almost debt free — under 10%Maximum home price
$392,243
Monthly obligations
$2,600.00
- Housing payment$2,100.0081%
- Other debt$500.0019%
- Max monthly housing payment
- $2,100.00
- Maximum loan amount
- $332,243
- Down payment
- $60,000
- Down payment share
- 15.3%
- Existing debt-to-income
- 6.7%
- Price as a multiple of income
- 4.36 ×
- This treats the whole 28% as principal and interest. Property tax, homeowners insurance, PMI, and HOA dues come out of the same budget, so your realistic price is lower — often 15–25% lower.
- A down payment under 20% of the purchase price usually means paying private mortgage insurance until you reach 20% equity.
How this is calculated
- Gross monthly income
- $7,500.00
- 28% housing limit
- $2,100.00
- Other monthly debts
- $500.00
- 36% total-debt limit, less debts
- $2,200.00
- Payment budget (the lower one)
- $2,100.00
- Monthly rate
- 0.5417%
- Number of payments
- 360
- Loan that payment supports
- $332,243
- Plus down payment
- $60,000
- Maximum home price
- $392,243
- Total repaid over the term
- $756,000
- Total interest
- $423,757
Compare scenarios
See how one change moves the result
- CurrentYour inputs as they stand$392,243Current
- Gross annual income$ 113,000$477,149
- Other monthly debt payments$/mo 625$388,287
- Cash down payment$ 75,000$407,243
For informational purposes only. This is not financial advice — confirm major decisions with a licensed advisor.
Frequently asked questions
What is the 28/36 rule?
It is the underwriting guideline that your monthly housing cost should stay at or below 28% of gross monthly income, and that all monthly debt payments together — housing plus car loans, student loans, and card minimums — should stay at or below 36%.
Does this include property taxes and insurance?
No. This calculator converts the whole payment budget into principal and interest so the arithmetic is transparent. Taxes, homeowners insurance, PMI, and HOA dues share that same 28%, so a realistic maximum price is typically 15 to 25 percent below the figure shown here.
How much do I need for a down payment?
Twenty percent of the purchase price avoids private mortgage insurance and gets the best pricing, but conventional loans go down to 3%, FHA to 3.5%, and VA and USDA loans to zero for those who qualify. A smaller down payment buys less house and costs more each month.
Why does paying off a car loan raise my maximum home price so much?
Because the 36% back-end limit subtracts your other debts dollar for dollar from the housing budget, and a mortgage multiplies that budget by roughly 150 to 160 at typical 30-year rates. Clearing a $400 car payment can therefore add well over $60,000 to what you can borrow.
Do lenders ever approve more than the 28/36 rule allows?
Yes. Strong credit, large reserves, or an automated approval can stretch total debt to 43% or beyond, and many government-backed programs go higher still. Being approved for more is not the same as being able to afford more, so treat the rule as a budget rather than a ceiling.