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Home Affordability Calculator
How much house can you actually afford? We apply the same 28/36 rule most lenders use.
Car loans, student loans, credit card minimums
Home Price You Can Afford
—
| Max Housing Budget / month (28%) | — |
| Max Total Debt / month (36%) | — |
| Usable Housing Budget | — |
| Max Loan Amount | — |
| Down Payment | — |
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The 28/36 Rule Explained
Lenders typically cap two ratios:
- Front-end (28%): housing costs — mortgage, taxes, insurance — should not exceed 28% of your gross monthly income.
- Back-end (36%): housing costs plus all other debt payments should not exceed 36% of gross monthly income.
Your usable budget is the lower of the two caps. Many lenders allow DTI up to 43%–50% with strong credit, but staying near 36% keeps your budget resilient.
Factors That Change What You Can Afford
- Credit score: a higher score unlocks lower rates — the biggest lever on monthly cost.
- Down payment: under 20% adds PMI, effectively reducing what you can afford.
- Existing debt: every $100/month of debt reduces your buying power by roughly $15,000–$20,000.
- Local property taxes: vary widely by state and county — adjust the taxes field for your area.
FAQ
Should I spend the maximum I'm approved for?
Not necessarily. Approval is based on gross income; your real budget should account for childcare, savings goals and lifestyle. Many buyers deliberately stay 10%–15% below their max.
Does this include closing costs?
No. Budget an extra 2%–5% of the home price for closing costs on top of your down payment.