How Much House Can I Afford
Estimate the maximum home price you can afford based on income and debts.
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This calculator estimates how much house you can afford using the standard 28/36 debt-to-income rule: your mortgage payment should not exceed 28% of gross monthly income, and total debts (mortgage + car + student loans + credit cards) should not exceed 36%. Enter your income, existing debts, down payment and expected interest rate to see your maximum home price.
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Frequently asked questions
The 28/36 rule says your mortgage payment should be no more than 28% of gross monthly income (front-end ratio) and your total monthly debt payments should be no more than 36% of gross income (back-end ratio). Most lenders use this guideline.
Monthly debts include car payments, student loans, minimum credit card payments, personal loans and any other recurring debt obligations. Utilities, groceries and subscriptions are not included.
Conventional loans require 3-20% down. FHA loans require 3.5%. Putting down 20% avoids PMI (private mortgage insurance) which adds $100-300/month. VA and USDA loans offer 0% down for eligible borrowers.
This calculation covers principal and interest only. Budget an additional 1-2% of the home value per year for property taxes and $1,000-3,000/year for homeowner's insurance. These reduce the home price you can actually afford.
Some lenders allow DTI ratios up to 43-50%, especially for borrowers with excellent credit, large reserves, or compensating factors. However, stretching your budget increases financial risk.