Home Affordability Calculator
Estimate the home price you can afford from your income, debts and down payment using the 28/36 rule.
How to use the Home Affordability Calculator
- Enter your gross annual income before tax.
- Enter your total existing monthly debt payments.
- Enter the mortgage rate, term and your down payment.
- See the home price and monthly payment you can realistically support.
28/36 rule: housing ≤ 28% of gross income and total debts ≤ 36%, back-solved into a loan
About the Home Affordability Calculator
This calculator answers the question every buyer starts with: how much house can I actually afford? It uses the long-standing 28/36 rule that lenders lean on — your housing payment should stay within about 28% of gross monthly income, and all your debt payments together within about 36%. It takes whichever of those two limits is tighter once your existing debts are counted, reserves a slice for property tax and insurance, and back-solves the mortgage that payment could support at your rate and term. Add your down payment and you get an affordable purchase price.
The value is in seeing the levers. A higher down payment, a lower rate, or clearing a car loan each move the number in ways that are hard to feel until you see them side by side. Because the estimate is driven by income and debts rather than a lender's marketing, it tends to be more conservative — and more realistic — than the maximum a bank might approve you for.
It is a planning guide, not a mortgage offer. Real approvals also weigh your credit score, employment history, the specific loan program and local costs, and lenders set their own ratios. Once you have a target price, run the exact payment through the mortgage calculator, size your deposit with the down payment calculator, and check your debt-to-income ratio.
Frequently asked questions
What is the 28/36 rule?
It is a common lending guideline: spend no more than 28% of your gross monthly income on housing, and no more than 36% on all debt payments combined. This calculator uses whichever limit is tighter after your existing debts.
Why is this lower than what my bank approved?
Banks sometimes approve higher amounts based on their own risk models. This calculator is deliberately conservative and income-driven, which is closer to what is comfortable to repay rather than the maximum you could borrow.
Does it include property tax and insurance?
It reserves roughly a fifth of the housing budget for tax and insurance before sizing the loan, since those are real monthly costs. Actual amounts vary by location, so treat it as an estimate.