How Much House Can I Afford Calculator
Lenders want your housing costs under 28% of gross income and total debts under 36%. This calculator uses those rules plus your down payment and rate to find your realistic home price.
How this calculator works
The calculator applies the two standard affordability rules: your total housing payment (principal, interest, taxes, insurance) should stay under 28% of gross monthly income, and your housing payment plus other debts should stay under 36%. It takes the stricter of the two, subtracts estimated taxes and insurance, and solves for the largest loan you can carry at your rate and term. Add your down payment to reach the maximum home price. These are conservative planning numbers — lenders may approve more, but stretching your budget is the leading cause of mortgage stress.
Frequently asked questions
What is the 28/36 rule?
The 28/36 rule says your housing costs should not exceed 28% of gross monthly income, and your total debt payments (housing plus car, student loans, credit cards) should not exceed 36%. It is a conservative guideline most lenders use as a starting point.
Should I use my pre-tax or after-tax income?
The rule uses gross (pre-tax) income, matching how lenders calculate debt-to-income ratios. For a more conservative picture of what you can truly afford, many buyers run the numbers again using their take-home pay.
What about PMI?
With a down payment under 20%, private mortgage insurance adds roughly 0.3–1.5% of the loan per year to your housing cost. Buyers putting down 20% or more avoid PMI entirely — this calculator assumes you do not pay it.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.