How lenders decide what you can afford
Affordability is driven by two ratios. The front-end rule caps housing costs at about 28% of your gross monthly income; the back-end rule caps all debt (housing plus other payments) at around 36%. This calculator takes the lower of the two, then works out the mortgage that payment supports at your rate and term.
What the estimate includes
The maximum payment here covers principal and interest. Real housing costs also include property tax, homeowners insurance and possibly PMI and HOA fees, which reduce how much loan you can carry. Treat this as an upper bound and leave room for those extras.
Levers that change your number
A bigger down payment raises the price you can reach and may remove PMI. Paying down other debts frees up back-end room. A lower rate stretches each dollar of payment further. Try adjusting each input to see how much your affordable price moves.
Affordable isn't the same as comfortable
Qualifying for a payment doesn't mean you should spend to the limit. Leave margin for maintenance, emergencies and lifestyle. This is a planning estimate using standard ratios; a lender's approval depends on credit, full documentation and their own guidelines.
Frequently asked questions
How much house can I afford?
Roughly the price whose mortgage payment keeps housing under 28% of gross income and total debt under 36%. Enter your income, debts, down payment and rate for an estimate.
What is the 28/36 rule?
A lender guideline: spend no more than 28% of gross monthly income on housing, and no more than 36% on all debt combined. This calculator applies both and uses the stricter limit.
Does this include taxes and insurance?
The maximum payment covers principal and interest only. Property tax, insurance, PMI and HOA fees are extra and lower what you can borrow, so treat the result as an upper bound.
How does my down payment affect it?
A larger down payment increases the total price you can afford and can eliminate PMI once you reach 20% down, freeing up more of your budget for the loan itself.