Home Affordability Calculator
How much house can you afford? Based on your income, debts, and down payment — using the 28/36 rule.
Your finances
Loan assumptions
Start house hunting with a real number
Before you browse listings, know your ceiling. This works backward from your income and debts to the highest price you can responsibly afford.
Maximum home price
Enter income, debts, and down payment to get the top home price your budget supports — the number to set your search filters around.
The 28/36 rule
Applies both the front-end (28% housing) and back-end (36% total debt) DTI ratios that lenders use, and tells you which one is limiting you.
Real state property tax
Uses average effective property-tax rates for all 50 states, so a $400k budget in New Jersey buys differently than in Hawaii.
PMI-aware
Automatically adds PMI when your down payment is under 20%, giving a realistic monthly payment at the maximum price.
See what limits you
Discover whether your income or your existing debt is the binding constraint — and therefore which lever raises your buying power.
100% private
Your income and debts never leave your browser — no account, no data collection.
When to use it
Before house hunting
Set realistic search filters so you only tour homes you can actually finance.
Down payment planning
See how saving a bigger down payment raises your maximum price and removes PMI.
Debt payoff strategy
Discover how clearing a car loan or card balance unlocks more buying power.
Comparing states
See how relocating to a lower property-tax state changes what you can afford.
Frequently Asked Questions
How much house can I afford on my income?
A widely used guideline is the 28/36 rule: spend no more than 28% of your gross monthly income on housing (the front-end ratio), and keep total debt payments — housing plus car loans, student loans, and credit cards — under 36% (the back-end ratio). This calculator applies both and uses whichever produces the lower, safer maximum, then works backward to the home price that fits.
What is the 28/36 rule?
It is a debt-to-income (DTI) benchmark lenders use. The 28 means your monthly mortgage payment (including taxes and insurance) should not exceed 28% of gross monthly income. The 36 means all your monthly debt obligations combined should not exceed 36%. Some loan programs allow higher back-end ratios (43% or more), which is why this tool lets you adjust the DTI input.
Does a bigger down payment let me afford more?
Yes, in two ways. A larger down payment reduces the loan you need for any given home price, lowering the monthly payment — so the same monthly budget stretches to a higher price. And reaching 20% down eliminates PMI, freeing up more of your payment for principal and interest. The calculator factors both effects in automatically.
Why does my state matter?
Property tax is part of your monthly housing payment, and rates vary enormously by state — from around 0.28% of home value in Hawaii to 2.49% in New Jersey. On a $400,000 home that is a difference of hundreds of dollars a month, which directly changes how much house your budget supports. Selecting your state applies the average effective property-tax rate.
How is this different from a mortgage calculator?
A mortgage calculator answers "what is my monthly payment for this home price?" This affordability calculator answers the reverse — "what is the highest price I can afford given my income and debts?" It starts from your budget and works backward to a maximum price, which is the right starting point before you begin house hunting.
Will a lender approve me for this amount?
This is an estimate of affordability, not a pre-approval. Lenders also evaluate your credit score, employment history, cash reserves, and the specific loan program — and may approve more or less than the 28/36 rule suggests. Use this figure to set a realistic search range, then get pre-approved by a lender for a firm number before making offers.
Understanding Home Affordability
The most important number in home buying is not the price of a house — it is the price you can afford. Buying at the top of what a lender will approve is one of the most common financial mistakes, leaving owners "house poor" with little left for savings, emergencies, or life. Understanding how affordability is actually calculated keeps you in control of the number.
The 28/36 rule explained
Lenders assess affordability through two debt-to-income ratios. The front-end ratio says your total monthly housing payment — principal, interest, taxes, and insurance — should stay at or below 28% of gross monthly income. The back-end ratio says all your monthly debt combined (housing plus car loans, student loans, minimum credit card payments) should stay under 36%. Whichever ratio bites first sets your ceiling. Someone with significant existing debt is often capped by the back-end ratio long before the 28% housing limit.
Why the payment, not the price, is the real constraint
Affordability is fundamentally about the monthly payment your income can sustain, then working backward to a price. Two buyers with identical incomes can afford very different home prices depending on interest rates, property taxes, insurance, and down payment. When rates rise, the same monthly budget buys less house — which is why affordability calculators became essential as rates climbed from historic lows.
The levers that change your number
Three inputs move your maximum price the most. A larger down payment shrinks the loan and, past 20%, removes PMI. Paying down existing debt directly raises your back-end ratio headroom — clearing a $400 car payment can add tens of thousands to your maximum price. And where you buy matters, because property tax is baked into the monthly payment and varies fivefold across states. Income growth helps too, but these three are the fastest levers most buyers control.
Affordable vs approved
Lenders will often approve you for more than you should comfortably spend, because their formulas do not see your lifestyle, savings goals, childcare costs, or how much financial cushion helps you sleep at night. A useful discipline is to treat the calculator's figure as a maximum, then choose a target price below it that leaves room to keep investing, build an emergency fund, and absorb the ongoing costs of ownership — maintenance, repairs, and rising insurance — that the mortgage payment does not include.
Beyond the monthly payment
True affordability includes costs this calculator does not: closing costs (typically 2–5% of the price), moving expenses, immediate repairs, and the ongoing reality that owners spend roughly 1% of a home's value per year on maintenance. Building these into your plan — and getting pre-approved by a lender for a firm figure — turns an estimate into a confident, sustainable home purchase.