About the Home Affordability Calculator
"How much house can I afford?" is one of the most searched real estate finance questions, and the honest answer depends on more than just how much a lender is willing to approve — it depends on income, existing debt obligations, and how much of a monthly payment still leaves room for other financial goals.
This calculator applies the widely used 28/36 rule: housing costs shouldn't exceed 28% of gross monthly income, and total debt payments (including housing) shouldn't exceed 36%. It uses whichever constraint is more restrictive to estimate your maximum comfortable monthly payment, then works backward through a standard mortgage formula to estimate a maximum home price.
Frequently Asked Questions
Is the 28/36 rule a hard lending requirement?
No — it's a widely cited affordability guideline, not a universal lending rule. Actual lender approval criteria (debt-to-income limits, credit score requirements) vary by lender and loan type, and some approve borrowers above these thresholds.
Why isn't property tax or insurance included in this estimate?
Those costs vary enormously by location and home value, so they're not built into this simplified estimate — expect your actual affordable home price to be somewhat lower once property tax, homeowners insurance, and potentially HOA fees are factored into your monthly housing budget.
Does a larger down payment always mean I can afford a more expensive home?
Yes, directly — a larger down payment reduces how much you need to finance, which either lowers your monthly payment at the same price point or lets you afford a higher purchase price at the same monthly payment.