Home Affordability Calculator
This tool estimates how much house you can afford based on the guidelines lenders actually use. It applies the 28/36 rule to your income and existing debts, reserves part of the budget for taxes and insurance, and works backward to a maximum home price. Move the sliders to see how income, debts, your down payment, and the mortgage rate change what you can afford.
You could afford a home around $299,149 — a loan of $259,149 plus your $40,000 down. That keeps total housing near $2,100/month under the 28/36 rule.
Worked examples
Real results from this calculator, computed for a few common scenarios. Move the sliders above to run your own numbers.
| Annual gross income = $116,000 | You could afford a home around $374,015 — a loan of $334,015 plus your $40,000 down. That keeps total housing near $2,707/month under the 28/36 rule. |
| Annual gross income = $260,000 | You could afford a home around $788,654 — a loan of $748,654 plus your $40,000 down. That keeps total housing near $6,067/month under the 28/36 rule. |
| Annual gross income = $404,000 | You could afford a home around $1,203,293 — a loan of $1,163,293 plus your $40,000 down. That keeps total housing near $9,427/month under the 28/36 rule. |
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How this math works
The calculator applies the 28/36 rule, a common lending guideline. It limits your total housing payment to twenty eight percent of your gross monthly income and your total debt payments to thirty six percent, then takes the lower of the two as your housing budget. It reserves part of that budget for property tax and insurance, and uses the rest, along with the mortgage rate, to back out the loan you can support, then adds your down payment to reach a maximum home price.
Your existing debts and the mortgage rate both shrink what you can afford. High monthly debt payments lower the thirty six percent ceiling, which can become the binding limit instead of the housing rule. A higher rate raises the monthly cost of every borrowed dollar, so the same payment supports a smaller loan. Remember that taxes and insurance sit on top of principal and interest, so plan for the full payment.
Common questions
What is the 28/36 rule?
It is a common lending guideline that keeps your housing payment at or under twenty eight percent of gross monthly income and your total debt payments at or under thirty six percent. Staying within both limits signals to lenders that the payment is sustainable.
Does the estimate include taxes and insurance?
Yes, it reserves part of your housing budget for property tax and insurance, which is why the supported loan is smaller than the payment alone might suggest. These costs sit on top of principal and interest, so your full monthly payment includes them.
Should I borrow the maximum I qualify for?
Not necessarily. The maximum is an upper bound based on ratios, not a comfortable target, and it ignores savings goals, maintenance, and life expenses. Many buyers choose to borrow less than the limit to keep their budget flexible.
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Bloggers, teachers, credit unions, HR teams: embed the live Home Affordability Calculator free. Copy the snippet below — the tool keeps working and stays up to date automatically, no maintenance on your side.
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