Home Affordability Calculator

How much house can you afford? Apply the 28/36 debt-to-income rules to your income, debts, and down payment to find your maximum home price.

Annual gross income

Monthly debts (not including mortgage)

Down payment

Interest rate (annual %)

Loan term (years)

Annual property tax

Annual homeowners insurance

Monthly HOA dues

Maximum home price

Affordability breakdown

How this calculator works

Lenders often use two debt-to-income limits. The front-end limit says housing costs should stay under 28% of gross monthly income. The back-end limit says all debts, including the new housing payment, should stay under 36%. This calculator takes the lower of the two limits as the housing budget, subtracts taxes, insurance, and HOA dues, and converts what is left into the largest loan the standard amortization formula supports. Adding the down payment gives the maximum home price.

Results are estimates for education only and are not financial advice.

Affordability formula

Monthly income = annual income ÷ 12. Front-end limit = monthly income × 28%. Back-end limit = monthly income × 36% − monthly debts. Housing budget = the lower of the two limits. Maximum loan = P&I budget × ((1 + r)^n − 1) ÷ (r × (1 + r)^n), where r is the monthly rate and n is the number of payments.

How the maximum price is calculated, step by step

Divide annual income by 12 for gross monthly income.
Work out the front-end limit at 28% and the back-end limit at 36% minus other monthly debts, then take the lower one as the housing budget.
Subtract monthly taxes, insurance, and HOA dues from the housing budget to get the principal and interest budget.
Convert the principal and interest budget into a maximum loan with the amortization formula, then add the down payment for the maximum home price.

Worked example

With $120,000 of annual income, the monthly income is $10,000. The front-end limit is $2,800 and the back-end limit is $3,100 after $500 of monthly debts, so the housing budget is $2,800. After $500 of monthly taxes and $150 of monthly insurance, the principal and interest budget is $2,150. At 7.0% over 30 years that supports a loan of $323,161.27, and with a $60,000 down payment the maximum home price is $383,161.27.

What if my debts make the back-end limit lower?

Then the back-end rule binds, and paying down a car loan or credit card balance can raise your affordable price more than a raise can. The calculator shows both limits so you can see which one is holding you back.

Do lenders always use 28% and 36%?

No. Those are traditional rules of thumb. Many lenders allow higher ratios, especially for FHA and VA loans, and they also weigh credit score, reserves, and job history. Treat this result as a planning budget, not a pre-approval.

Should I buy at the maximum price?

Not necessarily. The maximum leaves little room for repairs, rate changes, or income shocks. Many buyers aim below the maximum so the monthly payment stays comfortable after moving costs and an emergency fund.