Find out how much house you can afford
Enter your income, debts, down payment, and loan terms to estimate your maximum home price using the 28/36 affordability rule.
House affordability by income
Maximum home price by income, using the 28/36 rule with a $20,000 down payment, $500 in monthly debts, and a 30-year loan at 7%.
| Annual income | Max housing payment | Max loan amount | Max home price |
|---|---|---|---|
| $50,000 | $700/mo | $105,215.3 | $125,215.3 |
| $70,000 | $1,300/mo | $195,399.84 | $215,399.84 |
| $90,000 | $1,800/mo | $270,553.62 | $290,553.62 |
| $110,000 | $2,266.67/mo | $340,697.15 | $360,697.15 |
| $130,000 | $2,733.33/mo | $410,840.69 | $430,840.69 |
| $150,000 | $3,200/mo | $480,984.22 | $500,984.22 |
Different income, debts, or down payment? Use the house affordability calculator above.
About the house affordability calculator
This calculator uses the 28/36 rule, a long-standing mortgage underwriting guideline that most conventional lenders still reference: your housing payment shouldn't exceed 28% of your gross monthly income (the "front-end" ratio), and your total debt payments — housing plus car loans, student loans, credit cards, and other recurring debt — shouldn't exceed 36% of gross monthly income (the "back-end" ratio).
The calculator computes both caps from your annual income, then subtracts your entered monthly debts from the 36% back-end limit to see how much room is left for housing once other obligations are accounted for. It takes the lower of the two limits (28% of income, or 36% minus your debts) as your maximum allowable housing payment, then subtracts an estimate for property taxes, homeowners insurance, and HOA dues — since those are part of a real mortgage payment but aren't part of the loan's principal and interest.
What's left is treated as the maximum principal-and-interest payment your budget can support, and that payment is run backward through the standard loan amortization formula (at your entered interest rate and term) to solve for the maximum loan amount. Adding your down payment to the maximum loan amount gives the maximum home price this calculator estimates you can afford.
The 28/36 rule is a widely used affordability guideline, not a universal lending rule — some loan programs (particularly FHA and VA loans) allow higher back-end ratios, and some lenders are stricter. It's meant as a sanity check and starting point for house hunting, not a substitute for a mortgage pre-approval.
Because this tool uses a flat estimate for taxes, insurance, and HOA dues rather than your actual local property tax rate or your actual homeowners insurance quote, real affordability in a specific neighborhood can differ — property tax rates alone vary by more than 2x between states and even between counties in the same state.
House affordability by income
Common income levels and the maximum home price they support.
House affordability calculator questions
How income, debts, and down payment shape your home-buying budget.
How much house can I afford based on my income?
A common guideline is the 28/36 rule: spend no more than 28% of your gross monthly income on housing, and no more than 36% on total debt including housing. This calculator applies that rule to your income, debts, down payment, interest rate, and loan term to estimate a maximum home price.
What is the 28/36 rule?
It's a mortgage affordability guideline used by many lenders: your monthly housing payment shouldn't exceed 28% of gross monthly income (the front-end ratio), and your total monthly debt payments — housing plus car loans, student loans, and credit cards — shouldn't exceed 36% (the back-end ratio).
Does this calculator account for property taxes and insurance?
Yes, as an estimate. It subtracts an "other monthly housing costs" figure (defaulting to $300) for property taxes, homeowners insurance, and HOA dues from your maximum housing budget before solving for loan amount, since those costs are part of a real mortgage payment but aren't part of principal and interest.
How does my down payment affect how much house I can afford?
Your down payment is added directly to the maximum loan amount this calculator computes from your income and debts, so a larger down payment increases the maximum home price dollar-for-dollar without changing your monthly payment.
How do monthly debts affect house affordability?
Existing monthly debts (car loans, student loans, credit cards) reduce the room left under the 36% back-end limit before housing is even considered, which can lower your maximum housing payment even if your front-end (28%) limit alone would allow more.
Is the 28/36 rule a hard lending requirement?
No — it's a widely used guideline, not a universal rule. Some loan programs, like FHA and VA loans, allow higher back-end ratios, and actual mortgage approval also depends on credit score, assets, and the specific lender's underwriting standards.
Sources & references
The formulas and guidelines used on this page are based on publicly available data from: