Home Affordability Calculator
See the maximum home price your income and debts support — based on the standard 28/36 debt-to-income guideline lenders use.
Your income & debts
Car loans, student loans, minimum credit card payments.
Maximum Home Price
$317,603
based on the lower of the 28% and 36% rules
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Last updated: August 5, 2026 · Reviewed by the DoCalc team
What Is a Home Affordability Calculator?
"How much house can I afford" is a different question from "how much will a lender approve me for" — and both are different from "how much should I spend." This calculator answers the first question using the traditional 28/36 debt-to-income guideline: the same conservative benchmark conventional lenders have long used to size a maximum housing payment against your income and existing debts.
The Formula
The calculator takes whichever of the two limits (28% "front-end" or 36% "back-end") is lower, then works backward through the mortgage payment formula — subtracting estimated taxes and insurance, then solving for the loan amount and home price that produces exactly that principal-and-interest payment.
Worked Example
$95,000 annual income ($7,917/mo), $400/mo other debts, $40,000 down payment, 6.75% rate, 30-year term:
In this example, the front-end (28%) rule is the binding constraint — $400/mo in other debts isn't enough to push the 36% back-end limit below it. Increase the other-debts field above to see the back-end rule take over as the binding constraint instead, which lowers the maximum price further.
28% vs. 36%: Which Rule Binds?
| Situation | Typically binding rule |
|---|---|
| Little to no other debt | 28% front-end (housing payment itself is the limit) |
| Meaningful car loan, student loan, or credit card debt | 36% back-end (total debt load is the limit) |
Pros and Cons of Borrowing at Your Maximum
Pros: maximizes purchasing power, useful as an upper bound when house-hunting in a competitive market.
Cons: leaves less monthly margin for savings, emergencies, maintenance, and other goals — many financial planners recommend budgeting below the maximum a lender would approve, not at it.
Who Should Use This Calculator
Use it if you're early in a home search and want a realistic price range before you start touring homes or talking to a lender.
Treat as a starting point if you're ready to get pre-approved — a lender's actual number, based on your verified income, credit score, and specific loan program, is authoritative over this estimate.
Common Mistakes to Avoid
The most common mistake is anchoring to the maximum a lender might approve rather than a payment that's comfortable given your full budget — mortgage lenders don't see your grocery bill, childcare costs, or savings goals. A second mistake is forgetting property tax and insurance vary significantly by location — the national-average estimates here are a starting point, not your specific area's rates. A third is not accounting for PMI if your down payment is under 20%, which adds to the monthly housing cost and reduces how much home price fits the same budget.
Expert Recommendation
Use this calculator to establish a realistic upper bound, then work backward from your actual monthly budget — including savings and other goals — to a target payment comfortably below that maximum. Get pre-approved by an actual lender before house-hunting seriously, since their number reflects your real credit profile.
Frequently Asked Questions
What is the 28/36 rule?
It's a widely-used debt-to-income guideline: your total monthly housing payment (principal, interest, taxes, insurance) generally shouldn't exceed 28% of your gross monthly income, and your total debt payments — housing plus car loans, student loans, credit cards, etc. — generally shouldn't exceed 36%. It originates from conventional mortgage underwriting standards and is still commonly referenced by lenders, though exact limits vary by loan type and lender.
Can I get approved for more than this calculator shows?
Possibly — some loan programs (particularly certain FHA and VA loans) allow higher back-end DTI ratios than the traditional 36% guideline, sometimes up to 43-50% depending on compensating factors like credit score and cash reserves. This calculator uses the conservative, traditional 28/36 benchmark; an actual lender may approve a different amount.
Does a higher DTI approval mean I should spend that much?
Not necessarily. Lenders calculate the maximum they'll approve based on default risk, not your personal comfort with the payment. Many financial planners recommend staying below what you're approved for, to leave room for savings, emergencies, and other goals.
What counts as "monthly debts" in this calculator?
Recurring debt payments that show up on a credit report — car loans, student loans, minimum credit card payments, personal loans. It does not include everyday living expenses like groceries or utilities, which aren't part of the standard DTI calculation lenders use.
Why does this show a lower number than a lender's pre-approval?
This calculator uses simplified assumptions (a flat insurance estimate, standard tax rate, and the traditional 28/36 thresholds) for a quick estimate. A lender's actual pre-approval factors in your specific credit score, exact debts, loan program, and verified income — always treat a lender's number as authoritative over this estimate.
How does down payment affect affordability?
A larger down payment reduces the loan amount needed for the same home price, which lowers the monthly principal-and-interest payment — freeing up room in your 28%/36% housing budget for a higher-priced home, all else equal.
Conclusion
The 28/36 rule gives a defensible, conservative starting estimate — but it's still an estimate. Use it to set a realistic price range before you shop, then confirm the real number with an actual mortgage pre-approval before making an offer.