House Affordability Calculator – How Much Can You Afford?
Estimate how much house you can afford using the 28/36 debt-to-income guideline.
About the House Affordability Calculator
What is the House Affordability Calculator?
A house affordability calculator estimates the maximum home price you can comfortably afford based on your income, existing debts and down payment.
Why use this calculator?
Lenders use debt-to-income ratios to decide how much they will lend. Knowing your own ceiling before you shop keeps you from wasting time on houses that will not finance.
How to use it
- Enter your gross annual income.
- Enter your total monthly debt payments (cars, cards, student loans).
- Add your available down payment.
- Set the interest rate and term to see an affordable price.
Formula
Max payment = min(income × 28%, income × 36% − other debts); loan = PV of that payment.
This is a guideline, not an approval. Lenders also weigh credit score, reserves and employment history. Property taxes and insurance are not included here.
Frequently Asked Questions
What is the 28/36 rule?
It suggests housing costs stay under 28% of gross monthly income and total debt under 36%. Lenders may allow higher ratios for strong borrowers.
Should I include property taxes and insurance?
Yes, for a complete picture. They are part of your payment (PITI) and can add hundreds of dollars a month, reducing the price you can afford.
What is included in a monthly mortgage payment?
Most payments combine principal, interest, property taxes and homeowners insurance (often called PITI). Some loans also include private mortgage insurance (PMI).
What is PMI and when can I drop it?
Private mortgage insurance is usually required when your down payment is under 20%. You can typically request removal once you reach 20% equity.
Fixed versus adjustable rate — which is better?
A fixed rate keeps the same interest rate for the whole term, giving predictable payments. An adjustable rate starts lower but can rise after the initial period.
How much house can I afford?
A common guideline is that housing costs stay below 28% of gross monthly income and total debt below 36%, though lenders and budgets vary.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is a quick estimate based on self-reported data. Pre-approval is a verified commitment after a lender reviews your finances.
Is this calculator free to use?
Yes. Every calculator on this site is completely free, with no hidden fees, no subscriptions and no limits on how many times you can use it.
How accurate are the results?
We use standard, widely accepted formulas and calculate in your browser using double-precision arithmetic. Results are rounded for readability, so treat them as reliable estimates rather than a guarantee. Real-world factors can vary the true figure.
Can I add this calculator to my own website?
Yes. Open this calculator page and use the "Add to your website" box in the sidebar to copy a ready-made iframe snippet, then paste it into any HTML page.