House affordability calculator
How much house you can afford on your income, debts and down payment.
About this calculator
How much house can I afford? This house affordability calculator turns your income, other debts and down payment into a home price that lenders are likely to accept.
Choose conventional 28/36 limits, more generous FHA-style limits or a cautious budget, and include property tax, insurance and HOA fees so the monthly cost is realistic.
How it works
Lenders cap housing costs at a share of gross income (28% under the 28/36 rule) and all debts at a larger share (36%). The lower limit sets the monthly budget, which is turned into a price using your rate, term and down payment.
Last reviewed:
Worked example
- Gross yearly income: $95,000
- Other debt payments: $400 a month
- Down payment: $50,000
- Interest rate: 6.5% a year
- Term: 30 yr
- Property tax and insurance: 1.5% of the price a year
- Lender limits: Conventional: 28% housing, 36% total debt
Home price you could afford: $334,541 (limited by the housing ratio)
Common questions
What is the 28/36 rule?
It says housing costs should be no more than 28% of your gross monthly income, and all debt payments no more than 36%. It's a common starting point, not a fixed law.
How much should I save for a down payment?
20% avoids private mortgage insurance on a conventional loan, but many buyers put down less. Remember closing costs as well, often 2% to 5% of the price.
Should I borrow the maximum I'm approved for?
Not always. Lenders don't see your other goals, like saving for retirement or children's costs. Many buyers choose a price below their maximum to keep a safety margin.
Sources and further reading
The story behind it
Where the idea came from: The 28/36 rule is a long-standing guideline used by many US mortgage lenders.
Lenders have used simple income ratios for decades to judge whether a mortgage is affordable. The 28/36 rule became a common rule of thumb because it is easy to apply and leaves room for everyday costs. This calculator works the rule backwards, from what you earn to the price you could pay.
Why you can trust this calculator
- It runs in your browser. Nothing you type into it is sent anywhere.
- The method is explained on this page, so you can check it yourself.
- Free to use, with no sign-up.
- Results are estimates, not financial advice.
- Spotted a mistake? Tell us and we'll look into it.
After 15 years as a mathematics educator, I built CalculStore to give students, teachers, professionals and anyone working with numbers simple, reliable tools.
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