House Affordability Calculator
Estimate the home price your finances support, using the 28/36 debt-to-income guidelines lenders apply. Enter your gross income, monthly debts, and down payment; add a property tax rate for a more realistic ceiling.
Affordability estimate
Example: $120,000 income, $500/mo debts, $40,000 down at 6.5% → about $482,990.
How lenders decide what you can afford
Affordability is driven by ratios, not just income. The front-end (28%) rule limits housing costs to 28% of gross monthly income; the back-end (36%) rule limits all debt to 36%. Whichever gives the smaller housing budget wins. In the worked example — $120,000 a year, $500 of monthly debts, $40,000 down at 6.5% — the budget supports about $2,800 a month, a $442,990 loan, and roughly a $482,990 home. The front-end ratio is the binding limit here. These figures come from the same tested engine as the calculator above.
Maximum isn't the same as comfortable
This estimate approximates the top of what a lender might approve — deliberately, so you know the ceiling. Real budgets should leave margin for property maintenance (often 1% of the home value per year), utilities, commuting, retirement saving, and the unexpected. Buying below your maximum is how you avoid being "house poor."
What raises your affordable price
Three levers move the number most: a larger down payment (adds directly to the price and can remove PMI), paying down existing debts (frees up back-end DTI), and a lower interest rate (a lower rate buys more house for the same payment). Once you have a target price, switch to the Mortgage Calculator to see the full monthly payment with taxes and insurance.
Frequently asked questions
What are the 28/36 rules?
Two debt-to-income (DTI) guidelines lenders use. The 28% front-end ratio caps housing costs at 28% of gross monthly income. The 36% back-end ratio caps all debt payments — housing plus car loans, credit cards, and student loans — at 36%. Your affordable payment is whichever limit is lower.
Is this how much I should spend?
No — it is roughly the maximum a lender might allow, not a recommendation. Many people are more comfortable spending well below the limit. Leave room for maintenance, utilities, savings, and life; the ceiling is not a target.
Why does my down payment change the price so much?
Your income sets the maximum monthly payment, which fixes the maximum loan. The down payment is added on top of that loan to get the home price, so every extra dollar of down payment raises the affordable price by roughly a dollar — plus it lowers your LTV and may remove PMI.
Does this include property taxes and insurance?
It can — add a property tax rate and the calculator reserves room for it inside the housing budget, lowering the affordable price accordingly. Insurance and HOA reduce it further. Leaving them blank estimates principal and interest only, which overstates affordability.
Not financial advice: a general educational estimate only. Real approval depends on credit, employment, the specific loan program, and lender overlays — get a pre-approval from a licensed lender before house-hunting. Values are processed locally in your browser and never transmitted. See the methodology page.