Home Affordability Calculator
Estimate how much house you can afford based on your income, debt, and down payment. Follows the 28/36 rule.
The 28/36 Rule
Lenders use the 28/36 rule to determine how much you can borrow. Your monthly housing costs should not exceed 28% of your gross monthly income (front-end ratio), and your total debt payments including housing should not exceed 36% (back-end ratio).
Down Payment Tips
- 20% down eliminates PMI
- FHA loans allow as low as 3.5%
- Conventional loans start at 3%
- VA and USDA loans can be 0%
- Larger down payment = lower monthly payment
Other Costs to Consider
- Closing costs (2–5% of home price)
- Home inspection ($300–500)
- Moving expenses
- Home maintenance (1% of value/year)
- Utilities and homeowners insurance
Frequently Asked Questions
The amount of house you can afford depends on your annual income, monthly debt payments, down payment, interest rate, loan term, property taxes, insurance, and HOA fees. Most lenders use the 28/36 rule: your monthly housing costs should not exceed 28% of your gross monthly income, and your total debt payments (including housing) should not exceed 36% of your gross monthly income. Enter your numbers above to get a personalized estimate.
The 28/36 rule is a common lending guideline that states your monthly housing costs (principal, interest, taxes, insurance, and HOA) should not exceed 28% of your gross monthly income, and your total debt payments (including housing costs plus other debts like car loans, student loans, and credit cards) should not exceed 36% of your gross monthly income. These ratios help lenders determine how much you can responsibly borrow.
A larger down payment reduces your loan amount, which lowers your monthly principal and interest payment. This means you can afford a more expensive home for the same monthly payment. A down payment of 20% or more also eliminates the need for private mortgage insurance (PMI), further reducing your monthly costs. You can enter your down payment as a dollar amount or a percentage of the home price.