How much house can I afford?

A classic guideline is the 28/36 rule: spend no more than 28% of gross monthly income on housing costs (mortgage, taxes, insurance) and no more than 36% on all debt payments combined. The calculator applies your income, debts, down payment, and interest rate to estimate a comfortable price range.

What is debt-to-income ratio (DTI) and why does it matter?

DTI is your total monthly debt payments divided by gross monthly income. Lenders use it to gauge repayment capacity — many cap total DTI around 43-50% depending on the loan program, but staying well below the maximum leaves room in your budget.

How does the down payment affect affordability?

A larger down payment shrinks the loan, lowers the monthly payment, and — at 20% down on a conventional loan — eliminates private mortgage insurance. Smaller down payments are possible (3-5% conventional, 3.5% FHA) but raise both the payment and total interest.

What costs should I budget for beyond the mortgage payment?

Property taxes, homeowners insurance, PMI if under 20% down, HOA dues, utilities, and maintenance — commonly estimated at 1-2% of the home's value per year. These can add hundreds of dollars monthly, so include them when judging affordability.

How do interest rates change how much house I can afford?

Higher rates raise the monthly cost of every borrowed dollar. As a rough rule, each 1 percentage point increase in mortgage rates cuts your buying power by about 10% for the same monthly payment, so rate changes can matter as much as price changes.

House Affordability Calculator

Determine how much house you can afford based on income, debts, and down payment. Free, fast, accurate — no signup, mobi

Income & Debts

Gross Monthly Income

Monthly Debt Payments

Available Down Payment

Credit Score

Loan Details

Loan Type

Interest Rate

Loan Term

Monthly Costs

Property Tax Rate

Home Insurance Rate

PMI Rate

HOA Fees

Maximum Home Price

$279,752

Based on your financial profile

Max Loan Amount

$229,752

Financing needed

Required Down Payment

$13,988

5% minimum

Monthly Payment (P&I)

$1,548

Principal & Interest

Total Monthly Payment

$2,240

Including taxes & insurance

Debt-to-Income Ratio

38.0%

Max: 43%

Front-End Ratio

28.0%

Housing costs only

How it works

A house affordability calculator works out a price range from your income, debts, down payment, and rate — based on the lender's 28/36 rule. No more than 28% of gross monthly income should go to housing, and no more than 36% to all debt combined.

The 28/36 rule

Max housing payment ≈ 28% × gross monthly income        Max total debt ≈ 36% × gross monthly income

gross income: monthly income before tax
housing payment: mortgage + taxes + insurance (PITI)

Worked example

Gross monthly income = $7,000
Existing debt payments = $400/month

Max housing = 7,000 × 0.28 = $1,960
Max total debt = 7,000 × 0.36 = $2,520 → leaves $2,120 for housing

Aim for a housing payment around $1,960 — the lower of the two limits.

Good to know

The payment cap includes taxes and insurance (PITI), not just principal and interest.
Lower interest rates and a bigger down payment both raise the price you can afford.
Just because you qualify for a payment doesn't mean it fits comfortably — leave room for savings and the unexpected.