Everyday numbers, solved

Home Affordability Calculator

Find the max home price you can afford from income, debts, and down payment using the 28/36 rule.

Results update instantly.Change any value and the estimate recalculates on the spot.

Money

Home Affordability Calculator

Find the highest home price that fits your income, debts, and down payment using the 28/36 rule.

$
$
$
%
yrs

Max home price

-

  • Max monthly payment-
  • Limiting rule-

Estimate for planning only. Uses the common 28/36 guideline; actual lenders use full underwriting with taxes, insurance, HOA dues, and credit. Not a pre-approval or financial advice.

How to use this calculator

1. Enter your gross annual income, monthly debt payments, and down payment. 2. Set the interest rate and loan term. 3. Read your max home price, your max monthly payment, and which rule set the limit.

Worked example

With $100,000 income, $500 in monthly debts, and an $80,000 down payment at 6.5% over 30 years: the 28% rule caps your payment at $2,333 per month, which supports a loan of about $369,159, for a max home price of about $449,159. The 36% back-end rule would allow $475,527, so the front-end rule is the binding limit.

How the math works

Monthly income is annual income divided by 12. The front-end rule allows 28% of it for housing; the back-end rule allows 36% minus your other monthly debts. The smaller of the two caps your monthly payment. That payment converts to a loan amount with the standard amortization formula, and your down payment is added to reach the max home price.

What is the 28/36 rule?
A common guideline: spend no more than 28% of gross monthly income on housing (the front-end ratio) and no more than 36% on all monthly debts including housing (the back-end ratio). Many lenders use versions of it when qualifying a mortgage.
Does this include property taxes and insurance?
No. This is a simplified check on the loan payment alone. Real lenders add taxes, insurance, and HOA dues into the housing payment, which lowers the price you qualify for.
How can I raise my affordable home price?
Paying down monthly debts is usually the fastest lever, because existing debts eat into the 36% back-end cap. A larger down payment also raises the max price dollar for dollar.
Is the max price what I should spend?
No. It is a ceiling, not a target. Leave room for maintenance, savings, and life changes; many buyers are comfortable well below their maximum.

Related calculators

MortgageMoneyRent vs BuyMoneyIncome taxMoneySalary converterMoney

How it works

How the Home Affordability Calculator works

Quick answer: With $100,000 income, $500 of monthly debts, and $80,000 down at 6.5%, the 28/36 rule puts a maximum home price around $449,159, with a payment up to $2,333.

Formula

Housing limit = 28% × gross monthly income
Total debt limit = 36% × gross monthly income − other debts
Max loan = payment × ((1 + r)^n − 1) ÷ (r(1 + r)^n); max price = max loan + down payment

The lower of the two limits sets the maximum payment. r is the rate ÷ 12, n the months.

Worked example

Income $100,000 ($8,333 a month), $500 debts, $80,000 down, 6.5%, 30 years. Maximum payment: $2,333. Maximum price: $449,159. Limiting rule: 28% front-end rule limits you.

$500 debts, $80,000 down, 6.5%

Annual incomeMax home price
$60,000$285,674Open
$80,000$375,327Open
$100,000$449,159Open
$150,000$633,738Open
$200,000$818,317Open

Assumptions and limits

  • The payment limit here covers principal and interest; budget separately for tax, insurance, and maintenance.
  • Lenders may approve higher ratios, but approval is not the same as comfort.

Frequently asked questions

What is the 28/36 rule?

A common guideline: spend no more than 28% of gross monthly income on housing (the front-end ratio) and no more than 36% on all monthly debts including housing (the back-end ratio). Many lenders use versions of it when qualifying a mortgage.

Does this include property taxes and insurance?

No. This is a simplified check on the loan payment alone. Real lenders add taxes, insurance, and HOA dues into the housing payment, which lowers the price you qualify for.

How can I raise my affordable home price?

Paying down monthly debts is usually the fastest lever, because existing debts eat into the 36% back-end cap. A larger down payment also raises the max price dollar for dollar.

Is the max price what I should spend?

No. It is a ceiling, not a target. Leave room for maintenance, savings, and life changes; many buyers are comfortable well below their maximum.

Browse calculators by topic

Home buyingHome buying and mortgage calculatorsDebt and creditDebt payoff and credit calculatorsSaving and investingSaving, investing, and retirement calculatorsSalary and taxSalary, paycheck, and income tax calculatorsIndia tax and savingsIndia tax and savings calculatorsHealth and fitnessHealth and fitness calculatorsEveryday toolsEveryday math, time, and utility calculators