Home Affordability Calculator
Estimate the most expensive home you can afford using the common 28/36 rule lenders use as a starting point.
- Max monthly housing payment
- $2,216.67
- Loan amount
- $286,192
- Down payment
- 12.3% of price
Affordable home price by income
With $400/month in other debts, $40,000 down, a 6.5% 30-year rate and 1.5% a year for taxes and insurance:
| Annual income | Home price |
|---|---|
| $50,000 | $178,693 |
| $75,000 | $264,550 |
| $100,000 | $341,602 |
| $125,000 | $418,654 |
| $150,000 | $495,705 |
| $200,000 | $649,809 |
How it works
The 28/36 rule says housing costs should stay under 28% of gross monthly income, and all debt payments under 36%. We use whichever limit is lower for you.
That monthly budget has to cover principal, interest, property tax and insurance. We solve for the home price that fits.
Lenders also look at credit score, reserves and loan type, so your actual approval can differ.
Tips
- What a lender approves and what feels comfortable aren't the same. Leave room for savings and repairs.
- Paying down a car loan or credit card before you apply can raise what you can afford.
Frequently asked questions
What is the 28/36 rule?
A guideline that keeps housing costs at or below 28% of gross monthly income and total debt payments at or below 36%.
Results are estimates for planning only and are not financial advice.