Home Affordability Calculator
Determine the maximum home price you can afford based on your income and debt.
Quick Answer
Determine the maximum home price you can afford based on your income and debt. Uses the 28/36 rule for a realistic budget.
How to Use This Calculator
Enter your gross monthly income, total monthly debt payments (car loans, credit cards, student loans), and your available down payment. The calculator uses the standard 28/36 rule: your housing payment should not exceed 28% of gross monthly income, and total debt payments (including the new mortgage) should not exceed 36%. It shows your maximum affordable home price, estimated monthly payment, and debt-to-income ratio. Use the down payment impact section to compare how different down payment percentages affect your monthly payment.
Understanding the 28/36 Rule
The 28/36 rule is a widely used guideline that lenders use to determine how much home you can afford. The front-end ratio (28%) means your monthly housing costs — principal, interest, taxes, and insurance — should not exceed 28% of your gross monthly income. The back-end ratio (36%) means all your debt payments including your mortgage should not exceed 36% of your income. Some lenders may stretch to 43% for qualified borrowers. Staying within these guidelines helps ensure you can comfortably afford your home payment while leaving room for savings and other expenses.