How Much House Can I Afford?
Find the most house your budget can carry. Enter your income, debts, and down payment and see the maximum price using the same debt-to-income rules lenders use, with taxes, insurance and PMI baked in.
You can afford about
How to use the home affordability calculator
- Enter your total gross (pre-tax) household income and the minimum monthly payments on all your debts: car loans, student loans, credit cards, child support.
- Add the cash you have for a down payment, plus the rate you expect to be quoted.
- Adjust property tax, insurance and HOA to match the area you are shopping in. These vary a lot by county.
- Pick a debt-to-income rule. Conservative is what most budgets can live with comfortably; Stretch is close to the most some lenders allow.
How lenders decide what you can afford
Lenders mostly look at two ratios. The front-end ratio is your total housing payment (principal, interest, property tax, insurance, PMI and HOA) divided by gross monthly income. The back-end ratio adds every other monthly debt payment. The classic guideline is 28% front-end and 36% back-end; this calculator finds the highest home price that keeps you under both limits, then tells you which one was the binding constraint.
The answer is very sensitive to the interest rate and to your existing debts. Every $100 of monthly debt you pay off raises your budget by roughly $15,000 at today's rates, and a one-point drop in rate can add tens of thousands to the price you qualify for. Property tax matters more than people expect, too: the same payment buys a noticeably smaller house in a 2% tax county than in a 0.6% one.
Remember that being approved for a payment is not the same as being comfortable with it. Lenders do not see your childcare costs, retirement contributions or travel habits. A good gut check is to live on the new budget for a few months before you buy, putting the difference between your current rent and the projected payment into savings. If it feels tight, aim lower. You will also need cash beyond the down payment for closing costs (typically 2–5% of the price), moving, and an emergency fund.
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Frequently asked questions
What is the 28/36 rule?
It is a common lending guideline: spend no more than 28% of gross monthly income on housing costs and no more than 36% on housing plus all other debt payments. Many loan programs allow higher ratios, but 28/36 leaves room for the rest of your life.
Does this include PMI?
Yes. If your down payment is less than 20% of the price, private mortgage insurance is added at the annual rate you enter (0.5% is a typical middle estimate; it ranges from about 0.2% to 1.5% depending on credit score and down payment).
Should I use gross or take-home income?
Gross (before tax). Lender ratios are defined on gross income, which is why the results can feel generous. If you budget from take-home pay, choose the Conservative rule.
Is this a pre-approval?
No. It is an estimate based on standard ratios. Actual approval depends on your credit score, employment history, cash reserves and the specific loan program.