How Much House Can I Afford?
Enter your income, monthly debts, and down payment to find your maximum comfortable home price. Uses the standard lender 28/36 DTI rule.
1 Income & Debts
2 Loan Details
3 Est. Housing Costs (optional)
4 Check a Specific Price (optional)
Enter your income to see results
Fill in annual income and down payment above to calculate your maximum affordable home price.
Maximum Affordable Home Price
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Based on 28/36 DTI rule — most comfortable budget
Max Monthly Payment
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Principal + interest + escrow
Max Loan Amount
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After your down payment
Debt-to-Income Analysis
Monthly Income
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Gross (before tax)
28% of Income
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Front-end limit
36% of Income
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Back-end limit
Binding Constraint
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What limits your budget
The 28/36 Rule Explained
US mortgage lenders use the 28/36 rule as their primary affordability threshold. It sets two limits on how much of your income can go toward debt.
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28
Front-End DTI: Your total housing payment — principal, interest, property taxes, and homeowners insurance (PITI) — should not exceed 28% of your gross monthly income.
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36
Back-End DTI: All of your monthly debt payments combined — housing plus car loans, student loans, credit cards — should not exceed 36% of your gross monthly income.
What Affects How Much You Can Borrow?
- Credit Score: Higher scores unlock lower rates, increasing power
- Debts: Monthly payments directly reduce your loan budget
What Can You Afford? Three Real Scenarios
Scenario 1
$80K income, $300/mo debt, 10% down
At 6.9%, 30-yr fixed, 10% down. Requires ~$27K down + ~$8K closing costs.
Scenario 2
$120K income, $800/mo debt, 20% down
Every $100/mo in existing debt costs ~$15,000 in home buying power.
Scenario 3
$60K income, FHA loan, 3.5% down
FHA allows higher DTI ratios than conventional. 3.5% down = $6,825 on a $195K home.
The Rule vs. Reality
The 28/36 rule gives you a safe, lender-verified ceiling — not a spending target. Many financial planners recommend targeting 20–25% of gross income on housing to preserve cash flow for emergencies, retirement, and maintenance (typically 1–2% of home value per year — on a $400,000 home, that's $4,000–$8,000/year).
Frequently Asked Questions
How much house can I afford?
Most lenders use the 28/36 rule: your total housing payment (principal, interest, property tax, insurance, HOA and PMI) should stay under 28% of gross monthly income, and all debt payments combined under 36%. On a $100,000 salary that is about $2,333 a month for housing. FHA and some conventional programs allow total debt ratios of 43–50% with strong credit or reserves.
What is a debt-to-income (DTI) ratio?
DTI is your monthly debt payments divided by gross monthly income. The front-end ratio counts only housing costs; the back-end ratio adds car loans, student loans, credit card minimums and other recurring debt. Utilities, groceries and insurance other than homeowners insurance are not included.
Does my down payment change how much I can afford?
Yes. A larger down payment lowers the loan amount and therefore the monthly payment, and at 20% or more on a conventional loan it also removes PMI. Both raise the home price that fits inside the same monthly budget.
Why is the lender's pre-approval higher than what feels comfortable?
Lenders approve up to the maximum DTI their guidelines allow, not what fits your savings goals, childcare or retirement contributions. Treat the approval as a ceiling and use the home budget calculator to check the payment against your real monthly spending.