Finance
Home Affordability Calculator
How much house can you afford? Lenders use the 28/36 rule: housing under 28% of gross income, all debts under 36%. Enter your income, debts and down payment for the price that fits — or work backwards from a target price to the income you need.
Your income & budget
Gross pay before tax, for everyone on the loan
$
Minimums on car, student and credit-card debt
$
Cash you can put down at closing
$
The annual mortgage rate you expect
%
Years to repay — 30 is standard
years
Taxes, insurance & DTI limits
Annual property tax, as a percent of price
%
Homeowners insurance premium, per year
$
Annual PMI as a percent of the loan (under 20% down)
%
Monthly HOA or condo dues
$
Max housing cost as a percent of gross income (28% is standard)
%
Max for all debts combined (36% is standard, up to 43–45%)
%
Home you can afford · 30y
$320,463
$280,463 loan · 12% down · front-end DTI binds
P&I $1,773Tax $294Ins $150PMI $117
Max monthly payment
$2,333
Principal & interest
$1,773
Property tax / mo
$294
Home insurance / mo
$150
PMI / mo
$117
Loan amount
$280,463
Front-end cap (28%)
$2,333
Back-end cap (36%)
$2,500
Your budget is the smaller of the two — $2,333, set by the front-end limit.
Estimate only. A lender's actual limit depends on your credit, the loan program and full documentation. Borrowing the maximum is rarely the same as a comfortable payment.
Try a scenario
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The basics
What decides how much you can afford?
Affordability is set by the monthly payment your income supports, not by the sticker price. Two ideas explain the whole thing.
housing ≤ 28% · all debt ≤ 36%
The 28/36 rule sets the budget
Lenders test two debt-to-income ratios. The front-end ratio caps housing costs; the back-end ratio caps all debt together. The smaller cap is your real budget.
On $100,000 income: front cap $2,333.33, back cap $2,500.00 after $500 debt
payment first, price second
Payment-driven, not price-driven
A lender approves a payment, then that payment backs into a price through the rate, term, tax, insurance and PMI. Change any of those and the price you can afford moves, even though your income has not.
A $2,333.33 budget buys about a $320,463 home here
Method
How to work out what you can afford
Four steps take you from a paycheck to a realistic shopping price.
- 1
Find your gross monthly income
Take total household income before tax and divide by twelve. Lenders work from gross, not take-home, because tax and withholding vary.
$100,000 ÷ 12 = $8,333.33 a month - 2
Apply the two DTI caps
The front-end cap is 28% of gross for housing alone. The back-end cap is 36% of gross for all debt, so subtract your other monthly payments from it.
front $2,333.33 · back $2,500.00 after $500 debt - 3
Take the smaller cap as your budget
Your housing budget is whichever limit is lower — the binding one. Here the front-end ratio sets the ceiling.
min($2,333.33, $2,500.00) = $2,333.33 - 4
Back the payment into a price
Solve for the price whose full PITI — principal, interest, tax, insurance and PMI — equals the budget. Because tax scales with price and PMI switches off at 20% equity, this is solved numerically.
$2,333.33 PITI → $320,463 home with $40,000 down
Worked examples
Affordable price across incomes
$40,000 down, $500 of other monthly debt, a 6.50% rate over 30 years, and the standard 28/36 limits. Income does most of the work.
| Annual income | Monthly budget | Home price | Loan amount |
|---|---|---|---|
| $50,000 | $1,000 | $152,380 | $112,380 |
| $75,000 | $1,750 | $244,250 | $204,250 |
| $100,000 | $2,333 | $320,463 | $280,463 |
| $125,000 | $2,917 | $396,675 | $356,675 |
| $150,000 | $3,500 | $472,888 | $432,888 |
| $200,000 | $4,667 | $625,313 | $585,313 |
Where it shows up
When the number matters
Three points in the buying journey where affordability is the deciding figure.
set the search filter
House hunting
Knowing the ceiling keeps the search realistic and stops you falling for a home a lender will not fund.
Shop a price band, not a dream number
target the pre-approval
Getting pre-approved
A pre-approval confirms the estimate with real documents. Knowing the figure first makes the conversation faster and sharper.
Walk in with a number you can defend
protect the budget
Budgeting for real life
The most a lender allows often leaves nothing for maintenance, savings or emergencies. Aim below the ceiling on purpose.
The max is not the comfortable number
Reference
Income to home price, at a glance
No other debt, $40,000 down, 6.50% over 30 years, 28/36 limits. A rule-of-thumb starting point before your own numbers.
| Income | Monthly budget | Home price | Roughly |
|---|---|---|---|
| $50,000 | $1,167 | $175,408 | 3.5× income |
| $75,000 | $1,750 | $244,250 | 3.3× income |
| $100,000 | $2,333 | $320,463 | 3.2× income |
| $125,000 | $2,917 | $396,675 | 3.2× income |
| $150,000 | $3,500 | $472,888 | 3.2× income |
| $200,000 | $4,667 | $625,313 | 3.1× income |
Worth knowing
Six things that change the answer
Small levers with a big effect on the price you qualify for.
front vs back ratio
Two ratios, one budget
The lower cap always wins. High existing debt makes the back-end ratio bind; a clean balance sheet makes the front-end ratio bind. Know which one is holding you back.
pay debt before you apply
Debt is worth more than savings
Clearing a monthly payment frees the back-end ratio dollar for dollar, and can raise your price more than the same cash added to a down payment.
rates move affordability
The rate is a hidden lever
A one-point rate move changes the payment on a given loan by roughly a tenth, so it swings the price your budget buys by tens of thousands.
20% down removes PMI
Down payment does double duty
A bigger down payment shrinks the loan and can remove PMI, freeing part of the payment for principal and interest and lifting the price you can reach.
taxes vary by location
Local taxes matter
Property tax is part of the payment, so the same income affords a cheaper house in a high-tax county than in a low-tax one. Use your local rate.
max ≠ comfortable
Leave headroom on purpose
Qualifying for a payment is not the same as living with it. Borrowing below the ceiling protects you against job changes, repairs and rate resets.
Quick chart
Home price by income and down payment
$500 of other debt, a 6.50% rate over 30 years, 28/36 limits. Read across for the effect of a bigger down payment at your income.
| Income | $20,000 down | $40,000 down | $60,000 down | $100,000 down |
|---|---|---|---|---|
| $50,000 | $128,657 | $152,380 | $169,847 | $204,781 |
| $75,000 | $226,645 | $244,250 | $273,476 | $308,409 |
| $100,000 | $302,858 | $320,463 | $338,067 | $389,010 |
| $125,000 | $379,070 | $396,675 | $414,280 | $469,610 |
| $150,000 | $455,283 | $472,888 | $490,493 | $525,702 |
| $200,000 | $607,709 | $625,313 | $642,918 | $678,127 |
How we calculate this
The method and our assumptions
The 28/36 rule sets a payment; the payment backs into a price through the full PITI stack.
budget = min(front, back)
The debt-to-income test
The front-end cap is the housing percent of gross income; the back-end cap is the all-debt percent, less your other monthly payments. The smaller figure is the budget.
solve PITI = budget
Backing into a price
We search for the price whose principal, interest, tax, insurance and PMI add up to the budget. Tax scales with price and PMI switches off at 20% down, so the solve is numeric.
- Default limits are the conservative 28/36; raise them to see what a lender might stretch to.
- The rate is fixed for the life of the loan; adjustable-rate loans are not modelled.
- Property tax and insurance are held constant; both drift over time in reality.
- The estimate is not a pre-approval — a lender verifies credit, income and assets.
Where to get a mortgage
Where to get pre-approved
Rows are ordered by borrower fit, not by any payout — the type that suits your situation comes first. Get a real pre-approval before you make offers; it confirms this estimate with your actual credit and documents.
| Where | Examples | Best for | Note |
|---|---|---|---|
| Online marketplace | LendingTree, Credible | Comparing several pre-approvals fast | One form returns quotes from multiple lenders — the quickest read on what you truly qualify for. |
| Direct lender / bank | Rocket, Chase, local banks | An existing banking relationship | Relationship pricing and hands-on help, but a single lender's view of your file. |
| Credit union | Member-owned lenders | Lower fees, flexible underwriting | Often the friendliest limits and cheapest fees, if you are eligible to join. |
| Mortgage broker | Independent brokers | Self-employed or complex income | Shops many lenders and knows which will stretch on debt-to-income for your situation. |
CalculateThis.io is not a lender and does not make credit decisions. When we add lender links they will be marked as sponsored, and we may earn a commission if you apply through one — it does not change the rate you are offered.
Sources
Where the method comes from
- Consumer Financial Protection Bureau — debt-to-income ratios and what lenders look for.
- The 28/36 rule — the long-standing conventional-lending affordability convention.
- Standard amortization formula for a fixed-rate, fully amortizing loan.
FAQ
Common questions
With $500 of other monthly debt, a $40,000 down payment, and a 6.50% rate over 30 years, the 28/36 rule supports a home of about $320,463 — a $2,333 monthly payment. Clear that debt and the affordable price rises to about $320,463; carry $1,200 of debt instead and it falls to about $250,782. Your rate, down payment and local taxes move the number, so run your own figures above.
It is the debt-to-income test most lenders start from. The 28 is the front-end ratio: your total housing payment — principal, interest, tax, insurance and any PMI or HOA — should stay under 28% of your gross monthly income. The 36 is the back-end ratio: all your debt payments together, housing included, should stay under 36%. The smaller of the two limits sets your budget. On $100,000 of income that is a front-end cap of $2,333 and a back-end cap of $2,500 after $500 of other debt.
The 28/36 rule is the conservative benchmark, but real limits are looser. Conventional loans often allow a back-end ratio up to 43–45%, and some government-backed programs go higher with compensating factors like strong credit or cash reserves. A lower ratio still means a cheaper, safer loan and better pricing. This calculator lets you raise the limits to see what a lender might stretch to, but the 28/36 figure is the one worth living with.
Every dollar of monthly debt payment comes straight off your housing budget through the back-end ratio. A $400 car payment is $400 less you can spend on a mortgage each month, which at a 6.50% rate is worth roughly $60,000 of home price. Paying off a car loan or a credit-card balance before you apply is often the fastest way to raise the price you qualify for — frequently more effective than saving a little more for the down payment.
Work it backwards. A $400,000 home with $80,000 (20%) down needs a full payment of roughly $2,600 a month including taxes and insurance. Under the 28% front-end rule that means about $112,000 of gross income with no other debt — more if you carry a car or student loan. The exact figure depends on the rate and your local property tax; enter a target payment above and adjust the income until the affordable price reaches your target.
Yes, in two ways. It shrinks the loan, so the same monthly budget stretches over a smaller balance and buys a higher price. It can also push you past 20% down, which removes PMI and frees up part of the payment for principal and interest. On the $100,000-income example, moving from $40,000 to $80,000 down raises the affordable price from about $320,463 to about $371,543. The quick chart on this page shows the effect across down payments.
No. This calculator estimates what the 28/36 rule supports; a pre-approval is a lender's conditional commitment after checking your credit, income and assets. Pre-approval is what a seller wants to see with an offer, and it can come in above or below this estimate depending on your file and the loan program. Use this to set a realistic target and a shopping range, then get pre-approved before you make offers.
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Ugo CharlesBuilt and fact-checked against our editorial standards · Last updated June 2026
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