House Affordability

Find out how much home you can afford based on your income, debts, and the 28/36 rule.

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The House Affordability Calculator uses the 28/36 rule—a lending standard—to estimate the maximum home price you can afford based on income and existing debts. Use this to set a realistic budget before house hunting and understand your borrowing capacity.

Enter your gross monthly income, monthly debt payments, and down payment. The calculator uses the 28/36 rule (housing cost no more than 28% of income, total debt no more than 36%) to estimate the maximum home price you can afford. Adjust interest rate and term to explore different scenarios.

Examples

Household Income of $95,000/Year

With a $95,000 annual income, $400/month in existing debts, a 6.5% mortgage rate, and 20% down payment, the 28/36 rule suggests a maximum housing payment of $2,217/month. This translates to an affordable home price of approximately $385,000 with a $77,000 down payment.

Dual Income of $140,000 with Student Loans

A couple earning $140,000/year has $850/month in student loan payments. Using the 28% front-end ratio, their maximum housing cost is $3,267/month. However, the 36% back-end limit caps total debt payments at $4,200, leaving $3,350 for housing. At 6.75% with 10% down, they can afford a home up to about $480,000.

Frequently Asked Questions

What is the 28/36 rule?
A common mortgage guideline stating housing costs should be ≤28% of gross income, and total debt ≤36%.
Does this include closing costs?
No, closing costs (usually 2-5% of purchase price) are paid upfront in addition to the down payment.
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Loan Calculator
Savings Goal Calculator
Salary Calculator

Quick Tips

  • •The 28/36 rule is a guideline, not a hard cap. Some lenders will approve higher DTI for strong credit profiles.
  • •Consider your lifestyle beyond the maximum. Just because you can afford a price doesn't mean it's comfortable—leave room for savings and unexpected expenses.
  • •Don't max out your affordable price. Lenders will approve based on income, but life changes (job loss, medical emergency) can create hardship.
  • •Factor in non-mortgage housing costs: property taxes, insurance, HOA, maintenance (budget 1% of home value annually).
  • •Get pre-approved before house hunting. This gives you a clear budget and makes offers more competitive.