Home Affordability Calculator

The Home Affordability Calculator estimates the maximum home price you can afford based on your income, monthly debts, down payment, and mortgage terms, using the lender 28/36 debt-to-income rule that underwriters rely on for pre-approval.

Intermediate⏱ 2 minutesUpdated 2026-07-06

Enter your details above and click “Calculate What I Can Afford” to see your results here.

How This Tool Works

Enter your gross annual income, monthly debt payments, down payment, and mortgage rate/term. Adjust the property tax rate and debt-to-income limit if you like, then see your maximum home price and estimated monthly payment.

Formula & Method

Lenders cap housing costs at about 28% of gross monthly income (front-end) and total debts at about 36% (back-end). We take the tighter limit, subtract taxes, insurance, and HOA, and back out the largest home price whose principal & interest fits the remaining budget.

Example Calculation

On $90,000/year with $400/month in debts, a $40,000 down payment, and a 30-year loan at 6.5%, the 28% housing cap allows roughly $2,100/month — supporting a home price of about $300,000–$320,000 depending on taxes and insurance.

Please note: This calculator provides estimates for general informational purposes only and is not financial advice. Actual rates, terms, taxes, and costs vary — consult a qualified financial professional before making financial decisions.

Frequently Asked Questions

What is the 28/36 rule?+

A common lender guideline: keep housing costs at or below 28% of your gross monthly income, and total monthly debts (housing plus car, student loans, and credit cards) at or below 36%. This calculator uses whichever limit is tighter.

Is this the same as getting pre-approved?+

No. This is a fast estimate based on income and debts. A real pre-approval also weighs your credit score, employment history, assets, and the specific loan program, so your approved amount may be higher or lower.

Should I borrow the maximum I can afford?+

Not necessarily. The maximum is what a lender may allow, not what is comfortable. Leave room for savings, emergencies, maintenance, and lifestyle — many buyers choose a payment below their ceiling.

How does my down payment change what I can afford?+

A larger down payment lowers your loan amount and monthly payment, so you can afford a higher-priced home for the same monthly budget — and a down payment of 20% or more helps you avoid private mortgage insurance.