House Affordability Calculator

Determine the maximum home price you can afford based on standard lending guidelines.

1. Your Finances
Annual Gross Income $
Monthly Debt Payments $
Available Down Payment $
2. Loan & Property Assumptions
Expected Interest Rate %
Loan Term (Years) Yrs
Annual Property Tax %
Annual Home Insurance %
Monthly HOA Fees $
Strictly Educational Estimate

This calculator uses the standard 28/36 lending rule to provide an estimate. It does not constitute financial advice or a guarantee of loan approval. Lenders also evaluate your credit score, employment history, and asset reserves. Always consult with a licensed mortgage broker before house hunting.

Maximum Comfortable Home Price
$0
Based on your income and debts
$0 Max Total Monthly
Payment (PITI)
$0 Estimated
Loan Amount
Monthly Income Allocation (Debt-to-Income)
New Housing
0%
Other Debts
0%
Remaining Income
100%

The 28/36 Rule Explained

Most conventional mortgage lenders use the "28/36 Rule" to determine your borrowing capacity. This rule ensures you aren't stretching your finances too thin.

  • The Front-End Ratio (28%): Your maximum total monthly housing payment (Principal, Interest, Taxes, and Insurance - known as PITI) should not exceed 28% of your gross (pre-tax) monthly income.
  • The Back-End Ratio (36%): Your total monthly debt obligations (your new housing payment PLUS your car loans, student loans, and minimum credit card payments) should not exceed 36% of your gross monthly income.
  • How it works: The calculator determines your maximum housing payment based on both rules, and then strictly applies the lower of the two to protect you from being "house poor." It then reverse-calculates the actual home price you can buy using your expected interest rates and taxes.