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Home Affordability Calculator

Find out how much house you can afford, based on your income, monthly debts and down payment — using the lender 28/36 debt-to-income rule.

Enter your household income, debts, down payment and loan details, then calculate to see the maximum home price you can afford and the full monthly cost.

Your Finances
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Down Payment & Loan
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Taxes & Fees
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How much house can I afford by salary?

This table estimates the maximum home price across a range of household incomes, using your current rate, term, tax, insurance and DTI settings above — with a 20% down payment and no other monthly debt. Adjust the inputs and press Calculate to refresh it.

Annual incomeGross monthlyMax home priceEst. monthly cost

Illustrative only, using the assumptions above. Your real limit depends on credit score, your full debts, local taxes and lender rules. Use the calculator for your own figures.

How much house can I afford?

Lenders rarely look at the sticker price of a home first — they look at your income and your existing debts. This calculator works backwards from those numbers: it finds the largest monthly payment you can comfortably carry, then converts that payment into a maximum loan and, with your down payment added, a maximum home price. Your property tax, home insurance and any HOA fee are subtracted first, so the figure reflects the full monthly cost of ownership rather than just principal and interest.

The formulas this calculator uses

1. Your monthly housing budget comes from the 28/36 debt-to-income rule:

H =min( 0.28 × M ,  0.36 × M − D )

2. That budget converts into a loan with the amortization payment factor:

Loan =HP&I×(1 + i)n − 1i (1 + i)n

3. Maximum home price = loan + down payment.

  • H — maximum monthly housing budget
  • M — gross monthly income (annual ÷ 12)
  • D — your other monthly debt payments
  • HP&I — the part of H left for principal & interest after property tax, insurance, HOA and PMI
  • i — monthly interest rate = annual rate ÷ 12
  • n — number of payments = term years × 12
Worked example — $120,000 income, no other debt, 6.748% over 30 years, 20% down, 1.5% tax, 0.5% insurance:
M = 120,000 ÷ 12 = 10,000  ·  H = min(0.28×10,000, 0.36×10,000 − 0) = $2,800/mo
Of that $2,800, about $2,119 is P&I → loan ≈ $326,798 → + 20% down = max home price ≈ $408,497

In budget mode, H is simply the monthly amount you enter (optionally including taxes & fees), so steps 2–3 work the same way.

The 28/36 rule explained

The most widely used affordability guideline is the 28/36 rule. The front-end ratio says your housing payment should stay at or below 28% of your gross monthly income. The back-end ratio says all of your monthly debt — housing plus car loans, student loans and credit cards — should stay at or below 36%. Whichever limit you hit first is the one that caps your budget. Some loan programs stretch these ratios (for example many approvals allow up to 43%), so the calculator lets you choose a more generous guideline if that fits your situation.

Front-end vs back-end ratios

Lenders lean on two debt-to-income (DTI) ratios. The front-end ratio divides your total monthly housing cost — principal, interest, property tax, insurance, PMI and any HOA fee — by your gross monthly income. The back-end ratio takes that same housing cost and adds every other recurring debt (car payments, student loans, minimum credit-card payments) before dividing by income. Because the back-end ratio captures more of your obligations, it is the one most lenders weigh the hardest, and it is the figure this calculator uses for its custom DTI options.

Conventional, FHA and VA limits

Different loan programs allow different DTI ceilings, which is why the guideline dropdown matters:

  • Conventional (28/36) — the classic benchmark for loans that follow Fannie Mae and Freddie Mac guidelines. Conservative and widely accepted.
  • FHA (31/43) — insured by the Federal Housing Administration, FHA loans permit more debt (about 31% front-end and 43% back-end) and smaller down payments, in exchange for mortgage-insurance premiums.
  • VA (41%) — available to eligible veterans and service members and guaranteed by the Department of Veterans Affairs. VA loans focus on a single back-end ratio near 41% and often need no down payment.
  • Custom 10%–50% — pick your own comfort level. Lower percentages give a safer, more conservative budget; higher ones stretch further but leave less breathing room.

When your down payment is below 20%, the calculator automatically adds an estimate for private mortgage insurance (PMI), since that cost is normally required on lower-down-payment conventional loans.

If the home you want is out of reach

If the number comes back lower than you hoped, a few levers can raise it over time: pay down existing debts to free up your back-end ratio, grow your down payment to lift the price ceiling and drop PMI, improve your credit score to earn a lower rate, or increase your qualifying income. Even a modest rate improvement or debt reduction can move your affordable price meaningfully.

Ways to afford more

  • Grow your down payment — it lifts your price ceiling and can remove PMI.
  • Pay down debts to free up your back-end ratio.
  • Choose a longer term to lower the monthly payment (you pay more interest overall).
  • Shop lenders for a lower rate — even 0.25% helps.

Estimate only — not a loan offer or financial advice. Lenders verify income, credit and documents and may use different ratios, taxes and insurance figures.

Sources & methodology

Affordability is estimated with the widely used 28/36 rule: housing costs up to about 28% of gross monthly income, and total debt payments up to about 36%. From your income, debts and down payment we work back to an estimated maximum home price and loan.

Sources: Standard debt-to-income (DTI) lending guidelines — Conventional 28/36 rule, FHA 31/43 and VA 41% — plus the standard mortgage amortization formula.

Built and tested against worked examples by CalcCopilot's founder, who has a background in engineering and mathematics. Last updated July 2026.

Frequently asked questions

How much house can I afford?

A common guideline is the 28/36 rule: keep housing at or below 28% of gross monthly income and total debts at or below 36%. This tool applies that to your income, debts and down payment to estimate a maximum price.

What is the 28/36 rule?

A debt-to-income guideline: the front-end ratio caps housing costs at 28% of gross monthly income, and the back-end ratio caps all monthly debts at 36%. Some programs allow higher ratios.

Does my down payment change what I can afford?

Yes — a bigger down payment reaches a higher price for the same payment, shrinks the loan, and can remove PMI past 20% down.

What counts as monthly debt?

Recurring obligations such as car loans, student loans, credit card minimums and personal loans. Utilities and groceries are usually not counted.

Is this the same as a mortgage pre-approval?

No — it is a planning estimate. A pre-approval requires a lender to verify income, credit, assets and documents.

How can I afford a more expensive home?

Raise income or down payment, pay down debts, choose a longer term, or secure a lower interest rate.

What is the difference between front-end and back-end DTI?

The front-end ratio divides only your housing cost by gross monthly income; the back-end ratio adds all other recurring debts first. Lenders usually weigh the back-end ratio most heavily.

How much can I afford with an FHA or VA loan?

FHA loans allow roughly 31%/43% ratios and VA loans about 41% back-end — both usually higher than the 28/36 rule. Pick FHA or VA in the calculator to apply them.