Finance calculator
Calculate how much house you can afford based on income, debts, down payment, and current mortgage rates using the 28/36 rule.
Estimates only — not financial, tax, or professional advice.
100% private — every number you enter is calculated in your browser and never sent to our servers.
What it calculates: Maximum Home Price, Maximum Loan Amount, Est. Monthly Mortgage (P&I), Max Monthly Housing Budget.
Updated 3 June 2026 · Transparent assumptions
Front-end rule: housing costs less than or equal to 28% gross monthly income.
$100K income, $500 debts, $60K down, 7% rate, 1.2% tax.
Max Housing Budget
$2,333/month
Max Home Price
~$338,615
Loan Amount
~$278,615
Monthly Payment (P&I)
~$1,854
On $100K income with a $60K down payment, you could afford roughly a $339K home at a 7% rate. The 28% front-end limit ($2,333) is the binding constraint here, not the 36% back-end limit ($2,500).
This tool answers a practical question before you start house hunting: given your income, existing debts, down payment, and current rates, what price range is realistic? It works backward from a monthly payment you can comfortably carry to the home price that payment supports.
It is most useful early in the process, when you want a sensible target rather than a precise quote. A lender pre-approval gives the final word, but a quick estimate here helps you shop in the right bracket and avoid falling for homes outside it.
Two guidelines drive the math. The front-end rule suggests keeping total housing costs at or below 28% of gross monthly income. The back-end rule suggests keeping all debt payments, housing included, at or below 36%. Your affordable payment is whichever of the two limits is lower.
When you carry little other debt, the 28% housing limit usually binds. When you carry car loans, student loans, or card balances, the 36% total-debt limit can become the tighter constraint and pull your budget down.
Your affordable housing payment has to cover more than principal and interest. Property taxes and homeowners insurance ride along inside it, so the calculator sets aside part of the budget for those before solving for the loan amount the rest can support.
Adding your down payment to that loan amount gives the maximum home price. A larger down payment lifts the price you can reach, both by shrinking the loan and, often, by helping you avoid private mortgage insurance.
The headline figure is a ceiling, not a recommendation. It is the most a typical lender might let you borrow under these rules, which is not the same as the amount that leaves room for savings, travel, and the unexpected.
Many buyers deliberately aim below the maximum. Notice which rule is binding in your breakdown: if the 36% limit is pulling the number down, paying off a car loan or card balance first can meaningfully raise what you can afford.
The biggest one is budgeting only for principal and interest and forgetting taxes, insurance, and possible PMI or HOA dues, which can add hundreds of dollars a month. Another is treating the maximum as a goal rather than an outer boundary.
People also forget that the rate they are quoted, and therefore the price they can afford, shifts as market rates move. A figure from a few months ago may no longer hold.
Get a pre-approval so you are negotiating with a real number, not an estimate. Pay down high-payment debts where you can, since each dollar of monthly debt removed expands your back-end room.
Build in a cushion for maintenance, which owners often underestimate, and for closing costs, which typically run a few percent of the price on top of your down payment.
This estimate assumes a 30-year fixed loan and standard ratios. Some programs, including FHA and VA loans, allow higher debt ratios, while a low down payment adds PMI that this simple view only roughly accounts for.
Treat the result as a planning estimate, not financial advice or a loan offer. Your actual borrowing limit depends on credit, documentation, and lender policy, so confirm the details with a mortgage professional.
Housing costs should stay below 28% of gross monthly income (the front-end ratio), and total debt payments below 36% (the back-end ratio). The tighter of the two constraints determines your limit. If you carry little other debt, the 28% housing rule usually applies; if you carry sizable car or student loan payments, the 36% rule can become the binding one.
It uses gross (pre-tax) income, because that is what lenders use to compute debt-to-income ratios. Keep in mind that your take-home pay is lower, so a payment that fits the 28% gross guideline can still feel tight against your actual paycheck. Many buyers comfortable on paper still choose to aim below the maximum.
A larger down payment raises the home price you can reach in two ways: it adds directly to the price on top of the loan, and it shrinks the loan your monthly budget has to cover. Putting down at least 20% also lets you avoid private mortgage insurance, freeing up part of your housing budget for principal and interest.
The housing budget has to cover property taxes and homeowners insurance, not just the mortgage. This calculator sets aside an estimate for those first, so the principal-and-interest payment it shows is smaller than the full housing budget. The leftover is what actually services the loan.
Sometimes. Government-backed programs such as FHA and VA loans often allow higher debt-to-income ratios than the standard 28/36 guideline, which can stretch your maximum. They have their own rules and costs, including mortgage insurance on FHA loans, so the trade-offs are worth reviewing with a lender.
Usually not. The figure here is a ceiling under typical lending rules, not a target. Borrowing the maximum leaves little margin for maintenance, emergencies, or rate changes on adjustable loans. Aiming somewhat below the maximum keeps room in your budget for saving and the unexpected costs of ownership.
It is a planning estimate that assumes a 30-year fixed loan and standard ratios with rough allowances for taxes and insurance. Your real limit depends on credit score, documentation, the lender, and local tax and insurance rates. Use it to find the right price range, then get a pre-approval for an accurate number.
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.
Finance disclaimer
Results are estimates based on the figures you enter and standard formulas. Rates, fees, taxes, and lender terms vary and change over time, so confirm important numbers with your lender or a qualified professional. This is educational information, not financial advice.
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Published 25 August 2026