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Home Affordability Calculator: How Much House Can I Afford?

Enter your income, monthly debts and down payment to see the most house you can afford under the 28/36 rule. The payment includes property tax, insurance and PMI, and you'll see which limit sets your budget.

Household income ($ per year) Before taxes, for everyone on the loan.

Monthly debt payments ($) Car, student loan, minimum credit card and other loan payments. Not rent or utilities.

Down payment ($) Cash toward the price, not counting closing costs.

Interest rate (%)

Loan term 30 years 20 years 15 years

More options

Property tax (% of price per year)

Homeowners insurance ($ per year)

HOA dues ($ per month)

PMI (% of loan per year) Only applied when the down payment is under 20%.

Max housing ratio (%) Housing payment ÷ gross monthly income.

Max total-debt ratio (%) Housing plus other debts ÷ gross monthly income.

Home price you can afford

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Monthly payment

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Loan amount

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Down payment (% of price)

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Monthly payment breakdown at this price

Principal & interest	—
Property tax	—
Homeowners insurance	—
PMI	—
HOA dues	—
Total monthly payment	—

Compare common lending limits

Home price you could afford under common debt-to-income limits

Limits	Payment	Home price
28% / 36% Rule of thumb	—	—
31% / 43% FHA standard	—	—
40% / 50% FHA top tier	—	—

Limits are housing / total debt as a share of gross income. The FHA rows are FHA's limits for manually underwritten loans, and its 40/50 top tier requires two compensating factors, such as cash reserves. Each row changes only the limits and keeps your other inputs, so it doesn't model FHA's own mortgage insurance.

Results are estimates for a fixed-rate loan. Property tax is figured as a share of the price, PMI applies only with less than 20% down, and closing costs, utilities and maintenance aren't included. Lenders apply their own rules, so the amount you're approved for may differ. See our terms of use.

How to use this calculator

Start with your household income: the yearly total, before taxes, of everyone who will be on the loan. Then enter your monthly debt payments. Count the minimum payments on car loans, student loans, credit cards and personal loans, plus court-ordered payments such as child support. Leave out rent, utilities, phone bills and groceries.

Next, enter your down payment, the cash you'll put toward the price. Keep the money for closing costs separate. Then add an interest rate and choose a loan term. If you don't have a rate quote yet, try a few rates to see a range.

The results update as you type, and the message under them tells you which limit set your budget. Open More options to enter your local property tax rate, insurance, HOA dues and PMI, or to change the two limits. Open Compare common lending limits to see the price under the higher limits some loan programs allow.

How the calculator works

The calculator works in two steps. First it finds your housing budget, the most you can spend on housing each month without going over either limit:

Housing budget = the lower of (monthly income × 28%) and (monthly income × 36% − other debts)

Then it finds the highest home price whose full monthly cost fits that budget. At any price, the cost is principal and interest on the loan (the price minus your down payment), plus property tax, insurance and HOA dues. If you put down less than 20%, PMI is added too.

Example: with the default inputs, a $100,000 income is $8,333.33 a month. The housing limit allows 28% of that, or $2,333.33. The total-debt limit allows 36%, or $3,000.00, and after $500 of other debts that leaves $2,500.00. The lower number, $2,333.33, is the budget. With $60,000 down and a 6.5%, 30-year loan, the highest price that fits is $338,067, with a $278,067 loan. The payment is made up of $1,757.57 of principal and interest, $309.89 of property tax, $150.00 of insurance and $115.86 of PMI.

Watch for the PMI cliff. PMI starts as soon as your down payment drops below 20% of the price, so the answer can land exactly on the 20% mark. With $70,000 down, the result is exactly $350,000. At that price there's no PMI and the payment is $2,240.62. Any higher price would add about $116.67 a month of PMI and push the payment to about $2,357, over the $2,333.33 budget.

The 28/36 rule and your debt-to-income ratios

The 28/36 rule is a common guideline for how much of your gross (pre-tax) income should go to a home:

• 28% for housing: keep your monthly housing payment at or below 28% of your gross monthly income. This calculator counts principal, interest, taxes, insurance, PMI and HOA dues as housing.
• 36% for all debt: keep housing plus all your other debt payments at or below 36%.

It's a rule of thumb, not a law. A Consumer Financial Protection Bureau worksheet, for example, suggests homeowners keep total debt payments at 36% of income or less. It also notes that some lenders go up to 43% or higher. Because the rule uses income before taxes, it can't see your take-home pay, retirement savings or child care costs. Treat the result as a starting point, not a target.

Front-end vs. back-end DTI

Lenders measure your debt load with two debt-to-income (DTI) ratios. The front-end ratio, or housing ratio, is your monthly housing payment divided by your gross monthly income. The back-end ratio, or total DTI, adds all your other monthly debt payments to the housing payment before dividing.

In the example, the $2,333.33 payment is 28.0% of the $8,333.33 monthly income. Adding the $500 of other debts brings the back-end ratio to 34.0%, under the 36% limit.

Which limit holds you back depends on your other debts. With small debts, it's usually the housing ratio. With bigger car or student loan payments, the total-debt ratio takes over. If the example household's other debts were $1,000 a month, 36% of income ($3,000.00) minus $1,000 would leave $2,000.00 for housing, and the affordable price would fall to $300,000. Check your own ratios with our debt-to-income ratio calculator.

What lenders look at

A calculator can't approve you for a loan. Under the federal ability-to-repay rule, most lenders must make a reasonable, good-faith determination that you can repay, based on your income, assets, employment, credit history and monthly expenses. In practice, they look closely at four things:

• Credit score. A higher score generally improves your odds of approval and gets you a lower rate. Each loan type sets its own minimum score.
• Debt-to-income ratios. Limits vary by loan type. For manually underwritten FHA loans, the standard limits are 31% for housing and 43% for total debt, rising as high as 40/50 with compensating factors such as cash reserves. Fannie Mae caps total DTI at 36% on manually underwritten loans, or 45% with strong credit and reserves, and at 50% for loans underwritten through its automated system. VA loans use a 41% total-debt guideline along with a test of the income you have left over each month.
• Down payment. In most cases you'll need at least 3% down, and FHA loans need at least 3.5%. VA loans can require no down payment for eligible veterans and service members. On a conventional loan, putting down less than 20% usually means paying PMI.
• Cash reserves. Lenders like to see savings left over after closing, often counted in months of mortgage payments, and some loans require them.

These limits make a big difference. In the example, FHA's standard 31/43 limits would allow a $370,730 home and its 40/50 tier $468,718, compared with $338,067 under 28/36. Open Compare common lending limits above to see your own numbers.

Costs beyond the monthly payment

The monthly payment isn't the whole cost of owning a home. Plan for these too:

• Closing costs typically run 2% to 5% of the purchase price, on top of your down payment. On a $338,067 home, that's about $6,761 to $16,903. Your lender must give you a Loan Estimate within three business days of your application, and it lists these costs.
• Maintenance and repairs. A common rule of thumb is to budget 1% to 4% of the home's value each year, with older homes toward the top of that range. For the example home, that's $3,381 to $13,523 a year, or about $282 to $1,127 a month.
• Utilities and upkeep you may not pay as a renter, such as water, trash collection and yard care.
• An emergency fund. The CFPB suggests keeping a cushion of about three to six months' worth of expenses after you pay your down payment and closing costs.

How to afford more house safely

• Pay down debt first, especially if the total-debt limit is the one holding you back. Cutting the example household's other debts from $1,000 to $500 a month raises the affordable price from $300,000 to $338,067.
• Save a bigger down payment. More cash down means a smaller loan, and reaching 20% removes PMI. If you already have PMI, see how to get rid of PMI.
• Improve your credit and compare lenders. A lower rate stretches the same budget further. At 6% instead of 6.5%, the example budget buys a $350,405 home, and at 7% only $326,496. Compare Loan Estimates from several lenders.
• Weigh the loan term. A 15-year loan saves interest, but its higher payment lowers the example price to $281,062. See 15-year vs. 30-year mortgage.
• Look at taxes and HOA dues. They're part of the payment. In the example, $250 a month of HOA dues would cut the affordable price by $32,662, to $305,405.
• Leave room in your budget. You don't have to buy at the top of your range. A lower payment leaves money for savings, retirement and surprises. A HUD-certified housing counselor can help you review your budget.

Frequently asked questions

Last reviewed: October 2026