How Much House Can I Afford?
Use your income, debts, and down payment to find the home price you can truly afford.
This mortgage affordability calculator shows how much house you can afford from your income, monthly debts, and down payment. It uses the 28/36 rule: housing stays under 28% of gross income, and all debt under 36%. On $8,000 a month with $400 of other debt, you can afford roughly a $335,000 home with $60,000 down.
Home Affordability Calculator
Load a preset to start, then edit any field with your own numbers.
Total household income before taxes. Use gross, not take-home.
Car loans, student loans, minimum card payments, child support. Not rent or utilities.
Cash you will put down. It adds directly to the price you can afford.
Your expected mortgage rate. Typical range: 5–8%.
A shorter term raises the payment, so it lowers the price you qualify for.
Advanced settings: escrow & DTI limits
Estimated escrow. This comes out of your housing budget before the loan. Typical range: 300–900.
Max share of income for housing. Standard is 28%.
Max share of income for all debt including housing. Standard is 36%, some loans allow up to 43%.
Please enter income and rate greater than zero.
Maximum home price you can afford
Max housing = min(28% × income, 36% × income − debts)
Max loan = (max housing − escrow) turned back into a loan amount
Max home price = max loan + your down payment. The lower of the two caps is the one that binds.
Show calculation breakdown
Total Debt as Share of Income
Max Home Price by Interest Rate
Smart Insights
Your personalized breakdown will appear here.
How Much House Can I Afford?
The honest answer is a range set by your income, your existing debts, and how much cash you can put down. This affordability calculator turns those three numbers into a maximum home price and loan amount, using the same 28/36 rule most lenders apply.
The price a lender will approve and the price you should actually spend are not always the same. This tool gives you the lender ceiling. Where you land under that ceiling is a budgeting choice, not a math one.
Who This Affordability Tool Helps
- First-time buyers who need a realistic price before browsing listings.
- Buyers with student or car loans who want to see how debt lowers their ceiling.
- Savers weighing how much a bigger down payment raises what they can buy.
Once you have a target price, the mortgage calculator shows the exact monthly payment for that price, rate, and term.
The 28/36 Rule Explained
Lenders judge affordability with two limits, written as 28/36. Both are shares of your gross monthly income, the amount before taxes.
- The 28% front-end limit. Your total housing payment, including taxes and insurance, should stay under 28% of gross income.
- The 36% back-end limit. All your debt payments together, housing plus car, cards, and loans, should stay under 36%.
Your ceiling is set by whichever limit is lower for you. Someone with no other debt is usually capped by the 28% housing rule. Someone with heavy car and card payments is capped by the 36% total-debt rule instead.
Why Lenders Use Two Limits
One limit protects against buying too much house. The other protects against carrying too much total debt. Together they keep your payment survivable if your income dips. Some loan programs stretch the back-end limit to 43% or higher, which the calculator lets you set in Advanced settings.
How the Affordability Calculator Works
You give the tool five numbers and it works backward from your income to a price.
- Enter gross monthly income. Use household income before taxes.
- Enter monthly debt payments. Add car, student, and card minimums. Leave out rent and utilities.
- Enter your down payment. This cash adds straight to the price you can reach.
- Enter the rate and term. These set how much loan a given payment buys.
The tool applies both DTI limits, subtracts your estimated taxes and insurance, converts the leftover payment into a maximum loan, then adds your down payment to reach a maximum home price. Every step is shown in the breakdown.
The Debts That Count
Only recurring debt payments count toward the 36% limit. To see your exact ratio and which debts drag it down, use the debt-to-income calculator, which is the same measure lenders pull from your credit report.
How Your Down Payment Changes What You Can Afford
Your down payment does two things. It adds directly to the price you can reach, dollar for dollar, and it can remove PMI once you cross 20% down, which frees up more of your housing budget for principal and interest.
That is why two buyers with identical incomes can afford very different homes. The one with more cash down reaches a higher price and often a lower monthly cost.
| Down Payment | Effect on Price | Effect on Payment |
|---|---|---|
| Larger | Raises max price directly | Lowers payment, may cut PMI |
| Smaller | Lowers max price | Raises payment, may add PMI |
To see how a target down payment splits between cash and loan, and where the 20% PMI line sits, use the down payment calculator.
How Interest Rates Move Your Budget
The rate quietly sets how much home a fixed payment buys. A higher rate means more of each payment is interest, so the same budget supports a smaller loan.
On a fixed housing budget, moving from 5% to 8% can cut your maximum loan by roughly a quarter. The rate bars in the results panel show this shift for your own numbers.
Affordability and the Amortization Behind It
The loan the calculator hands back is the largest one whose payment fits your budget. To see how that loan pays down over time and how much of it is interest, run it through the mortgage amortization calculator.
What the 28/36 Rule Leaves Out
The rule is a lending guide, not a life budget. It says nothing about the costs that make a house expensive to live in.
- Maintenance. Plan for roughly 1% of the home value a year in upkeep.
- Utilities. A larger home costs more to heat, cool, and light.
- Savings goals. Retirement and emergency funds do not appear in DTI, but they still need funding.
- Lifestyle. Childcare, travel, and hobbies are real even though lenders ignore them.
Many buyers deliberately shop below their approved ceiling for this reason. A payment you can technically qualify for is not always a payment you will enjoy living with.
Common Affordability Mistakes
Using Take-Home Pay
The 28/36 rule uses gross income, before taxes. Entering take-home pay understates your ceiling and confuses the comparison with lender numbers.
Forgetting Escrow
Taxes and insurance eat into your housing budget before the loan. Leave them out and the tool overstates what you can afford. Set a realistic escrow figure in Advanced settings.
Maxing Out the Approval
Buying right at your ceiling leaves no room for maintenance, savings, or a rough month. Treat the number as a limit, not a target.
Ignoring Rate Changes
A quote from last month can shift your budget by tens of thousands. Re-run the numbers with a current rate before you make an offer.
Home Affordability FAQs
How much house can I afford on my salary?
A common guide is 3 to 5 times your annual income, but the precise answer depends on your debts, down payment, and rate. This calculator applies the 28/36 rule to give you a specific number.
What is the 28/36 rule?
It caps your housing payment at 28% of gross monthly income and all your debt at 36%. Whichever limit is lower sets your maximum affordable payment.
Does my down payment change how much I can afford?
Yes. Your down payment adds directly to the price you can reach and can remove PMI at 20% down, which frees up more of your housing budget.
Should I use gross or net income?
Use gross income, the amount before taxes. Lenders base the 28/36 rule on gross pay, not take-home.
What debts count toward affordability?
Recurring payments like car loans, student loans, minimum card payments, and support payments. Rent, utilities, and groceries do not count.
Can I get approved above the 36% limit?
Sometimes. Some loan programs allow a back-end ratio up to 43% or more with strong credit and reserves. You can raise the limit in Advanced settings to model it.
Is the approved amount what I should spend?
Not necessarily. The calculator gives the lender ceiling. Many buyers choose a price below it to leave room for savings and upkeep.
Is this affordability calculator free?
Yes. There is no signup and nothing you enter leaves your browser.
Further Reading and Sources
The affordability math here follows standard lending ratios. Use these primary sources to check the rules:
- CFPB Owning a Home explains debt-to-income, affordability, and loan shopping from the federal consumer regulator.
- Fannie Mae publishes the DTI limits used for conforming loans.
- HUD Buying a Home covers FHA affordability rules and down payment assistance.
Lender overlays and loan programs vary. Confirm your real limits with a lender before making an offer.
Last updated August 21, 2026. This tool is provided for general informational and planning purposes only. It is not financial advice or a loan pre-approval. Lender guidelines, credit, and loan programs vary. Confirm your actual borrowing limit with a licensed lender before making an offer.
Creator
Shakeel Muzaffar is the Founder and Editor-in-Chief of MultiCalculators.com, bringing over 15 years of experience in digital publishing, product strategy, and online tool development. He leads the platform's editorial vision, ensuring every calculator meets strict standards for accuracy, usability, and real-world value. Shakeel personally oversees content quality, formula verification workflows, and the platform's commitment to publishing tools that are genuinely useful for students, professionals, and everyday users worldwide.
Areas of Expertise: Editorial Leadership, Digital Publishing, Product Strategy, Online Calculators, Web Standards
