House Affordability Calculator
Turn your income and debts into a home price range using the guideline many lenders start from.
| Home price you can afford | $436,095.23 |
|---|---|
| Loan amount | $376,095.23 |
| Max monthly housing payment | $2,800.00 |
| Principal & interest | $2,254.88 |
| Taxes & insurance | $545.12 |
| Limit that applied | 28% of income for housing |
How to use it
- Enter income before taxes and the minimum monthly payments on your other debts.
- Enter your down payment and a current rate quote.
- Property tax plus insurance is entered as a yearly percent of the price; check local tax rates.
- Leave the 28% and 36% limits, or change them to match a lender's rules.
Formula
Max housing payment = lower of (income ÷ 12 × 28%) and (income ÷ 12 × 36% − other debts)- Price = (max payment + f × down payment) ÷ (f + t), where f = monthly payment per $1 of loan and t = tax-and-insurance % ÷ 12
Example
With $120,000 income and $500 of monthly debts, 28% allows $2,800 for housing and 36% allows $3,600 − $500 = $3,100, so $2,800 applies. With $60,000 down, 6% for 30 years and 1.5% a year for tax and insurance, that supports a price of about $436,095.23: $2,254.88 principal and interest plus $545.12 tax and insurance.
Questions
Is the 28/36 rule a law?
No. It is a common guideline. Lenders use their own debt-to-income limits, and some loan programs allow higher ratios.
Does this include PMI or HOA dues?
No. If you'll pay either, lower the housing limit or add them to monthly debts to get a safer number.
What should I do next?
Plug the price into the mortgage calculator with real tax and insurance figures, and get a lender preapproval.
Related calculators
Last reviewed 2026-10-11. Found a mistake? Tell us.