🏡 House Affordability Calculator
Lenders commonly use the 28/36 rule: spend no more than 28% of gross monthly income on housing, and keep all monthly debts under 36%. This calculator applies both limits to your income and debts, then converts the smaller housing budget into a maximum loan and home price.
The result covers principal and interest only. Taxes, insurance and HOA dues also count toward the 28% in a real lender review, so treat this as an upper bound, not a target.
How to use this calculator
Type your annual income, other monthly debts, planned down payment percent, rate and term to find your maximum monthly housing budget and the highest home price that fits it.
- Enter your Annual gross income before tax.
- Add your Other monthly debt payments such as car or student loans.
- Set the Down payment percent, Annual interest rate and Loan term.
- Press Calculate to see your budget and the maximum home price under the 28/36 rule.
Frequently asked questions
What is the 28/36 rule?
It says housing costs should stay within 28% of gross monthly income, and all monthly debts together should stay within 36%. Lenders use these limits to judge how much mortgage you can carry.
How does it turn income into a home price?
It takes the smaller of the two budget limits as your monthly housing payment, converts that payment into a maximum loan with the amortization formula, then divides by one minus the down payment percent to get the price.
Can you walk through an example?
With $120,000 income, $500 of other monthly debts, 20% down, a 6.5% rate and 30 years, the housing budget is $2,800 a month, which supports a home price of about $553,738.
Does this include taxes and insurance?
No. The budget covers principal and interest only, while real lenders count taxes, insurance and HOA dues toward the 28%. Treat the result as a ceiling, not a spending target.