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Home Affordability Calculator

Find out the maximum home price you can afford. Enter your income, monthly debts, down payment, and loan details, and this calculator applies the classic 28/36 rule to estimate a comfortable budget.

Your Finances

How It Works

The 28/36 rule is a common guideline lenders use to decide how much house you can comfortably afford:

  • Front-end ratio (28%): Your total monthly housing payment — principal, interest, property tax, and insurance — should not exceed 28% of your gross monthly income.
  • Back-end ratio (36%): Your total monthly debt — housing plus car loans, credit cards, student loans, etc. — should not exceed 36% of your gross monthly income.

The calculator takes the lower of the two housing limits, subtracts estimated property tax and insurance, and works backward through the standard mortgage formula to find the largest loan you can support. Adding your down payment gives the maximum home price.

Mortgage formula: Loan = M × [(1 + r)n − 1] / [r(1 + r)n]

Where:
  • M = Monthly principal & interest available
  • r = Monthly interest rate (annual rate ÷ 12)
  • n = Number of payments (years × 12)

Tips for Home Buyers

Boost Your Budget

  • Pay down existing debts to free up your back-end ratio
  • A larger down payment lowers the loan you need
  • Shopping for a lower interest rate increases buying power

Stay Realistic

  • These ratios are guidelines, not guarantees of approval
  • Budget for closing costs, maintenance, and HOA fees
  • Leave room in your budget for emergencies and savings

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