Estimate a comfortable purchase price using the classic 28/36 guideline lenders use.
This home affordability calculator estimates how much house you can comfortably buy based on your income, monthly debts, and down payment. It applies the 28/36 rule lenders use: no more than about 28% of gross monthly income on housing, and 36% on total debt.
Lenders gauge affordability with two ratios. The front-end ratio keeps your total housing payment, principal, interest, taxes and insurance, at or below about 28% of gross (pre-tax) monthly income. The back-end ratio keeps all of your debt payments (housing plus cars, cards and loans) at or below roughly 36%. This calculator uses the lower of those two limits, which is why paying down other debt can raise your home budget as much as earning more.
Affordability isn't only about ratios. Lenders also weigh your credit score, your cash reserves, and your down payment, and a payment you technically qualify for isn't always one you'll be comfortable making once maintenance, utilities and savings goals are in the picture. Treat the number here as the top of your range, then decide where inside it you actually want to live.
The most common affordability guideline is the 28/36 rule. The front-end ratio says your total monthly housing payment, principal, interest, taxes, and insurance, should not exceed 28% of gross monthly income. The back-end ratio says all your monthly debt payments combined, housing plus car loans, student loans, and minimum card payments, should stay at or below 36%. Lenders use these ratios to gauge whether you can handle a mortgage without becoming overextended. Staying comfortably under the limits, rather than at them, leaves room to save and absorb surprises.
Income and debts drive the ratios, but approval also depends on your credit score, down payment, and cash reserves. A higher score earns a lower rate, which stretches how much you can afford; a larger down payment shrinks the loan and can remove mortgage insurance. Lenders also like to see steady employment and enough savings left after closing to cover several months of payments. Two people with the same salary can qualify for very different loans depending on these factors, which is why affordability is personal rather than a single formula.
A mortgage payment is not the full cost of ownership. Property taxes and homeowners insurance are usually bundled into the payment through escrow, but maintenance, repairs, utilities, and any HOA dues are on top. A common guideline is to budget around 1% of the home's value each year for upkeep, more for older homes. Buyers who plan only for the loan payment often feel squeezed once these ongoing costs arrive, so a realistic affordability estimate leaves margin for them.
The down payment does double duty: it lowers the loan amount and, at 20% or more, removes private mortgage insurance while often improving your rate. A bigger down payment therefore raises the price you can afford for a given monthly budget. But draining every dollar into a down payment is risky; keeping a healthy emergency fund matters more than squeezing to 20%. The calculator lets you test different down payments to see how each moves your affordable price and monthly cost.
Early in the process a lender can pre-qualify you based on self-reported numbers, a rough estimate that carries little weight with sellers. A pre-approval is stronger: the lender verifies your income, credit, and assets and issues a conditional commitment for a specific amount, which makes your offer far more competitive. Getting pre-approved before you shop also tells you your true budget and rate, so you are not surprised late in the process. Treat the affordability estimate here as a starting point, then confirm it with a lender.
If the price you can afford falls short of the homes you want, several levers can help. Raising your credit score before applying, by paying down balances and correcting report errors, can earn a lower rate that stretches your budget. Paying off a car loan or other monthly debt lowers your back-end ratio and frees up borrowing room. A larger down payment shrinks the loan and can remove mortgage insurance, while a longer term lowers the monthly payment at the cost of more lifetime interest. Even shopping several lenders matters, since a small rate difference changes the price you qualify for. Timing helps too: locking in when rates dip, or waiting to add income or savings, can move your affordable price meaningfully. The goal is not to maximize what a lender will approve, but to buy a home whose full cost fits comfortably within your life.
Lenders generally cap housing at ~28% of gross monthly income and total debt at ~36%. Enter your income and debts above for a personalized price range.
A lending guideline: spend no more than 28% of gross monthly income on housing costs, and no more than 36% on all debt payments combined.
Yes, the estimate reserves part of your budget for property taxes and insurance, not just principal and interest.
No. It's an estimate to guide your search. Actual approval also considers credit score, cash reserves, and lender-specific rules.
It varies with rates, debts, and down payment, but many buyers land near three to five times gross income. The 28/36 rule is a better guide than a simple multiple because it accounts for your other debts and the current interest rate.
No. Lenders approve a maximum based on ratios, but a comfortable budget usually sits below it. Borrowing less leaves room for retirement saving, maintenance, and life's surprises, and lowers your risk if income dips.
See the exact formula and a worked example on our methodology page.