House Affordability Calculator
Estimate how much house you can afford based on your income, debts, down payment, and the 28/36 rule.
Max Home Price
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Max Monthly Payment
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Max Loan Amount
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28% Rule Limit
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36% Rule Limit
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What is House Affordability Calculator?
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.
How to use
- 1 Enter your annual gross income.
- 2 Enter your total monthly debt payments (car loans, student loans, credit cards, etc.).
- 3 Enter your available down payment.
- 4 Enter the expected annual interest rate and loan term.
- 5 Maximum home price and monthly payment limits appear instantly.
Formula
Example calculation
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.
Frequently asked questions
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.