Home Affordability Calculator
Estimate how much house you can afford using the common 28/36 rule of thumb that many lenders use.
When to use this calculator
Use this calculator when you start house hunting and want a realistic price range. It uses your income, existing monthly debt payments, savings for a down payment and a mortgage rate to estimate what size loan and what price fit your budget.
Example home prices
How this calculator works
Lenders often limit housing costs to 28 percent of gross monthly income and total debts to 36 percent. We use whichever limit is lower, then subtract an estimated 1.55 percent a year for property tax and insurance, and solve for the loan that fits the rest. Your own taxes, insurance, HOA fees and lender rules will differ.
Step-by-step example
Using these inputs: Yearly income before tax ($): 90000; Monthly debt payments ($): 400; Down payment saved ($): 40000; Mortgage rate (%): 6.5; Loan term: 30 years.
With $90,000 of income, $400 of monthly debts, a $40,000 down payment and a 6.5% rate, you could afford a home of about $309,080. The loan would be $269,080, with a total housing cost near $2,100 a month.
Tips for a better estimate
- Lenders look at your debt-to-income ratio. A common guide is to keep housing costs near 28% of income and total debts near 36%.
- Add other costs such as maintenance, HOA fees and utilities when you decide how much is comfortable.
- Remember that what a lender will approve can be more than you want to spend.
FAQ
Is this what a lender will approve?
No. It is a guide. Lenders look at credit score, savings and other factors, and some approve higher ratios.
Does a bigger down payment help?
Yes. It lowers the loan amount and may remove mortgage insurance.
Should I buy the maximum?
Not always. Leave room in your budget for repairs and other costs.
How much of my income should go to housing?
A common guideline is about 28% of gross income for housing and 36% for all debts. Your own comfort level matters more than a rule.
Why does my debt matter?
Monthly debts reduce how much payment a lender will allow, which lowers the loan you can get.
Is the result a guarantee?
No. It is an estimate. Lenders also look at credit score, job history and cash reserves.
Rates and limits last updated: October 2026. This is an estimate for general information only, not financial, tax or legal advice.
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