How Much House Can You Afford?

Estimate the home price you can afford from income, debts, down payment and today's mortgage rate using the 28/36 rule lenders actually apply, with taxes, insurance and HOA included.

Lenders do not care what you feel you can afford. They cap your housing payment at a share of gross income and your total debt payments at a slightly higher share. This calculator runs those two limits with property tax, insurance and HOA included, and converts the result into a home price at your rate.

Gross annual household income

Other monthly debt payments

Car loans, student loans, minimum card payments.

Down payment

Mortgage rate

Loan term Property tax rate

% of price / yr

Home insurance

$ / yr

HOA dues

$ / mo

Housing ratio limit

Front-end DTI. 28% is the classic ceiling; some lenders allow more.

Total debt ratio limit

Back-end DTI. Conventional loans often allow up to 43-45% with strong credit.

The 28/36 rule, applied properly

Your maximum housing payment is the lower of two numbers: 28% of gross monthly income, or 36% of gross monthly income minus your other debt payments. That payment must cover principal and interest, property tax, insurance and HOA, so the calculator solves for the price at which all of those add up to the limit at your rate and term.

Lenders often approve higher ratios, especially with strong credit and reserves, but the 28/36 answer is the one that leaves room for everything else in a budget. Raise the limits above to see what a looser lender might approve; lower them to see a conservative target.

What it leaves out

Closing costs (2-5% of price), moving, immediate repairs, and the fact that a bigger house costs more to heat, furnish and maintain. Treat the maximum as a ceiling, not a goal.

Frequently asked

How much house can I afford on $100,000 a year?

With no other debt, 20% down and a 6.5% 30-year rate, roughly $380,000-$400,000 under the 28% housing limit; existing debt and higher rates reduce it quickly.

What is the 28/36 rule?

Spend at most 28% of gross income on housing and at most 36% on all debt payments combined. Lenders use versions of both limits to size a mortgage.

Does the calculator include PMI?

No. Below 20% down, add roughly 0.3-1.5% of the loan amount per year, which lowers the affordable price.