What is the 28/36 rule for home affordability?

The 28/36 rule suggests spending no more than 28% of your gross monthly income on housing costs, and no more than 36% on all debts combined, including housing, credit cards, car loans and other obligations.

Does this calculator guarantee loan approval?

No. This calculator is an educational tool. Lenders use their own underwriting rules, credit checks, and documentation to decide how much they are willing to lend.

Which costs are included in housing payments?

Housing costs typically include principal and interest on your mortgage plus property taxes and homeowner’s insurance. Some buyers also pay HOA dues, mortgage insurance or other fees.

How Much House Can I Afford?

Enter your income, monthly debts, down payment and interest rate to see how much house you can afford. We estimate a maximum purchase price, loan amount, and monthly payment using common DTI rules like the 28/36 rule.

Annual gross income

Monthly debts (credit cards, car, student loans)

Down payment % of home price

Loan term (years)

Annual interest rate %

Property tax rate % of home price (annual)

Home insurance & HOA per month

Affordability rule

Maximum home price

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Maximum loan amount

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Monthly principal & interest

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Total monthly housing cost

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Housing DTI

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Total DTI (housing + debts)

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Estimated annual property tax

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Monthly tax + insurance

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This is an educational estimate. Lenders use their own rules and may approve more or less than this calculator suggests.

How this home affordability calculator works

We estimate how much house you can afford by comparing your income and debts against common debt-to-income (DTI) rules and then solving backwards for a home price that fits your budget.

Income: Your gross income is converted to a monthly amount.
Debts: Monthly debts include credit cards, car loans, student loans and other recurring payments.
Housing costs: We estimate principal & interest, property taxes, and insurance/HOA.
DTI rules: You can use the 28/36 rule, a 30% housing rule, or custom limits.

Once we know your maximum affordable housing payment, we use the standard mortgage amortisation formula to solve for the loan amount and home price that fit inside that payment.

Mortgage payment formula: PMT = P × r / (1 − (1 + r)⁻ⁿ)

FAQs

What is a good DTI ratio when buying a home?

Many lenders aim for total DTI (including housing and other debts) of 36% or less, but some allow higher ratios.

Does this include taxes and insurance?

Yes. We estimate property taxes as a percentage of the home price and add your monthly insurance/HOA estimate on top of principal and interest.

What if my debts are high?

High monthly debts reduce the amount of income left for housing costs, lowering the price you can afford.