How much house can I afford according to this calculator?

Most affordability calculators evaluate home budget using the 28/36 rule. Your housing cost (principal, interest, taxes, and insurance) should not exceed 28% of your gross monthly income, and your total monthly liabilities (debts plus mortgage) should not exceed 36% of your gross income.

Is the 28/36 rule still relevant today?

It's a useful starting point but may be conservative or aggressive depending on your local market, job stability, and financial goals. Lenders may approve higher ratios; financial advisors often recommend staying under them.

What counts as monthly debt for the 36% rule?

Include minimum monthly payments on car loans, student loans, personal loans, and credit cards. Do not include utility bills, groceries, insurance, or the new mortgage payment itself.

Does this include property taxes and insurance?

No. For a true housing budget, add estimated property taxes (~1–2% of home value/year) and homeowner's insurance to determine whether you're within the 28% limit.

What if I have no other debt?

With zero debt, the 36% rule becomes the binding constraint and equals 36% of gross monthly income — giving you more room than the 28% rule. This calculator shows both limits.

How much down payment do I need?

Conventional loans require as little as 3–5%, but less than 20% typically requires PMI. A larger down payment reduces your loan amount and monthly payments.

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House Affordability Calculator — How Much House Can I Afford

Estimate how much house you can afford based on your income, debts, down payment, and the 28/36 rule.

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How to use this calculator

👉 Fill in the boxes below and your answer appears instantly — no maths needed, we do it all for you! 🎉

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In plain English — what does this do?

💵 A money helper! It works out things like how much to save, how much you owe, or how much you’ll have in the future. Just fill in the boxes and you’ll get your answer.

📌 Direct Answer & Summary

The house affordability calculator uses the 28/36 rule — a widely used guideline — to estimate the maximum home price you can afford. The 28% rule limits your monthly housing payment to 28% of gross monthly income. The 36% rule limits total debt payments (housing + other debts) to 36% of gross monthly income. The more conservative result is used.

Annual Income ($)

Monthly Debts ($)

Down Payment ($)

Annual Interest Rate (%)

Loan Term

What is House Affordability Calculator — How Much House Can I Afford?

How to use it

1️⃣ Enter your annual gross income.
2️⃣ Enter your total monthly debt payments (car loans, student loans, credit cards, etc.).
3️⃣ Enter your available down payment.
4️⃣ Enter the expected annual interest rate and loan term.
5️⃣ Maximum home price and monthly payment limits appear instantly.

Formula

Max housing payment (28 rule) = gross monthly income × 0.28. Max housing payment (36 rule) = gross monthly income × 0.36 − monthly debts. Max loan = min(both limits) amortized. Max home price = max loan + down payment.

💡 See it in action — a real example

Annual income $80,000 → monthly income $6,667. 28% rule: max payment $1,867. 36% rule with $500/mo debts: $6,667×0.36−$500 = $1,900. Binding limit: $1,867. At 7%, 30 yr: max loan ≈ $280,000. With $40,000 down: max home ≈ $320,000.

❓ Common questions

How much house can I afford according to this calculator?: Most affordability calculators evaluate home budget using the 28/36 rule. Your housing cost (principal, interest, taxes, and insurance) should not exceed 28% of your gross monthly income, and your total monthly liabilities (debts plus mortgage) should not exceed 36% of your gross income.
Is the 28/36 rule still relevant today?: It's a useful starting point but may be conservative or aggressive depending on your local market, job stability, and financial goals. Lenders may approve higher ratios; financial advisors often recommend staying under them.
What counts as monthly debt for the 36% rule?: Include minimum monthly payments on car loans, student loans, personal loans, and credit cards. Do not include utility bills, groceries, insurance, or the new mortgage payment itself.
Does this include property taxes and insurance?: No. For a true housing budget, add estimated property taxes (~1–2% of home value/year) and homeowner's insurance to determine whether you're within the 28% limit.
What if I have no other debt?: With zero debt, the 36% rule becomes the binding constraint and equals 36% of gross monthly income — giving you more room than the 28% rule. This calculator shows both limits.
How much down payment do I need?: Conventional loans require as little as 3–5%, but less than 20% typically requires PMI. A larger down payment reduces your loan amount and monthly payments.

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