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Home loans

How Much House Can I Afford?

Turn your income, debts, and down payment into a real home-price budget using the lender 28/36 rule — with the full monthly payment it implies.

InputsDTI 28/36
$
$
$
%
Property tax Annual, % of value
%
Home insurance Annual premium
$
HOA dues Monthly
$
Home you can afford28% limit
$365,000
monthly housing budget$2,800
principal + interest$2,108
tax + insurance$485
estimated PMI$203
max loan
$325,000
total payment
$2,796/mo
down payment
$40,000

How lenders decide what you can afford

Affordability comes down to two debt-to-income (DTI) ratios. The front-end ratio limits your monthly housing cost — principal, interest, property tax, insurance, and any HOA — to about 28% of your gross monthly income. The back-end ratio limits your housing cost plus every other minimum debt payment (car loans, student loans, credit cards) to about 36%.

max housing = min( 28% × income , 36% × income − other debts )

Whichever limit is smaller becomes your monthly housing budget. From there we solve backward for the highest home price whose full payment — including taxes, insurance, and PMI if you're under 20% down — fits that budget.

Common questions

How much house can I afford on my salary?
Lenders generally cap your housing payment at 28% of gross monthly income and your total debt payments at 36% (the 28/36 rule). Enter your income, debts, and down payment above and the calculator solves for the highest home price that stays inside both limits.
What is the 28/36 rule?
It's the classic debt-to-income guideline. The front-end ratio keeps housing (principal, interest, taxes, insurance, HOA) at or below 28% of gross monthly income. The back-end ratio keeps housing plus all other debt payments at or below 36%. Whichever limit is lower sets your budget.
Does my down payment change how much I can afford?
Yes. A bigger down payment shrinks the loan, so more of your monthly budget buys home price rather than interest — and above 20% down you skip PMI, freeing up budget. Adjust the down payment to see the max price move.
Should I borrow the maximum I qualify for?
Usually not. The 28/36 rule is a ceiling, not a target. Leaving room for savings, maintenance, and life keeps you comfortable if rates, taxes, or your income change. Treat the result as an upper bound.

How we calculate this

We derive your housing budget from the 28/36 DTI rule, then solve for the highest home price whose full PITI fits it. Planning estimates only — a lender's pre-approval also weighs credit, assets, and program rules. Not financial advice.

Full methodology & sources →
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Estimates for general informational purposes only and not a loan offer or financial advice. The 28/36 rule is a common guideline; actual approval depends on your credit, assets, loan program, and lender. Consult a licensed professional.