How much house can you afford?
Lenders size your loan mostly on your income and existing debts, using two debt-to-income guidelines known as the 28/36 rule. The front-end ratio says your monthly housing payment should stay around 28% of your gross monthly income. The back-end ratio says all your monthly debt payments — housing plus car loans, student loans and credit cards — should stay under about 36%. This calculator applies both and uses whichever is stricter.
What the estimate includes
Your maximum monthly housing budget has to cover principal, interest, property tax and insurance (PITI). The calculator works backward from that budget, at your rate and term, to the loan you can support, then adds your down payment to reach an affordable home price. A larger down payment, a lower rate, or clearing other debts all raise the number.
Frequently asked questions
What is the 28/36 rule?
It is a common mortgage affordability guideline. The 28 refers to keeping your monthly housing payment (principal, interest, taxes and insurance) at or below 28% of your gross monthly income. The 36 refers to keeping all monthly debt payments combined at or below 36%. Some loan programs allow higher ratios, which is why you can adjust the max DTI here.
Does a bigger down payment let me afford more?
Yes. Your income sets the loan you can support through the monthly payment, and your down payment adds directly on top of that to reach the home price. A larger down payment also reduces or removes mortgage insurance, freeing up more of the payment for principal and interest.
Is the amount I qualify for the amount I should spend?
Not necessarily. These ratios are maximums lenders use; a comfortable budget is often lower, leaving room for savings, emergencies and life goals. Treat the result as a ceiling and choose a payment you feel good about.