Home Affordability Calculator

Find the highest home price that fits your income and debts using the 28/36 debt-to-income rule.

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Before taxes, for everyone on the loan.

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Car, student, credit-card minimums, etc. Not rent.

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Home price you can afford
$354,076

About $354,076 with $60,000 down — keep closing costs (often 2–5% of the price) and an emergency fund on top of that.

Monthly housing budget
Principal & interest: $1,859 (79.7%)Property tax: $324.57 (13.9%)Insurance & HOA: $150.00 (6.4%)$2,333per month
  • Principal & interest$1,85979.7%
  • Property tax$324.5713.9%
  • Insurance & HOA$150.006.4%
Loan amount
$294,076
Max monthly housing payment
$2,333.33
Principal & interest part
$1,858.76
Limiting rule
Housing ratio (28%)
Your gross monthly income
$0$1,000$2,000$3,000$4,000$5,000$6,000Housing — Per month: $2,333HousingOther debts — Per month: $500.00Other debtsEverything else — Per month: $5,500Everything el…
Show the working
  1. Monthly income = $100,000.00 ÷ 12 = $8,333.33
  2. Front-end cap = 28% × income = $2,333.33; back-end cap = 36% × income − $500.00 debts = $2,500.00
  3. Housing budget = the lower one = $2,333.33
  4. Price solves (price − down)·f + price·tax + insurance/HOA = budget, with f = 0.006321 per $ borrowed

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Formula

Budget = min(front% × monthly income, back% × monthly income − other debts)Price = (Budget − insurance − HOA + down × f) ÷ (f + tax rate ÷ 12)f = r ÷ (1 − (1 + r)^−n), the monthly P&I per dollar borrowed

How it works

Lenders judge affordability mainly by your debt-to-income ratio. The traditional "28/36" rule says your total housing payment — principal, interest, property tax, insurance and HOA — should stay under 28% of gross monthly income, and all debt payments together under 36%. This calculator applies both limits and uses whichever is stricter.

Once the monthly budget is known, the calculator works backwards to a price. Part of the budget goes to costs that grow with the price (property tax), part to fixed costs (insurance, HOA), and the rest pays principal and interest on whatever the down payment does not cover.

Many loan programs allow higher ratios — FHA loans often go to 43% or more on the back end — so you may be approved for more than this shows. Treat the result as a comfortable ceiling rather than a target, and adjust the ratios if you want a more aggressive or conservative estimate.

Frequently asked questions

Should I use gross or take-home income?

Use gross (pre-tax) income, because the 28/36 ratios are defined on gross income. If you want a budget based on take-home pay, lower the ratios — many people aim for housing under 25% of net pay.

How does the interest rate change what I can afford?

A lot. At the same monthly budget, each one-point rise in the rate cuts the affordable price by roughly 10%, because more of every payment goes to interest.

What counts as "other monthly debts"?

Minimum payments that show up on your credit report: car loans, student loans, credit cards, personal loans, child support. Utilities, phone bills and groceries are not included.

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