Home Affordability Calculator
Find out the maximum home price you can afford based on your income, debts, and down payment using the 28/36 debt-to-income rule.
Your Income & Debts
Pre-tax household income
Car loans, student loans, credit cards, etc.
Loan Details
$72,098
Housing Costs
Annual rate as % of home value
Debt-to-Income Rules
Max % of income for housing costs
Max % of income for all debts
The standard 28/36 rule is used by most conventional lenders. FHA loans may allow up to 31/43. Some lenders go higher with strong credit.
Maximum Home Price
$360,492
based on the 28% housing rule (binding constraint)
Monthly Payment Breakdown
Total Monthly Payment
$2,333.33
Principal & Interest
$1,822.84
Property Tax
$360.49
Home Insurance
$150.00
Loan Amount
$288,393
Down Payment
$72,098
Payment Composition
Debt-to-Income Check
Front-End (housing only)
$2,333.33 / $8,333.33 = 28%
Back-End (all debts)
$2,833.33 / $8,333.33 = 34.0%
Interest Rate Sensitivity
| Rate | Max Home Price | Monthly Payment |
|---|---|---|
| 5.00% | $412,372 | $2,333.33 |
| 5.50% | $393,939 | $2,333.33 |
| 6.00% | $376,670 | $2,333.33 |
| 6.50% | $360,492 | $2,333.33 |
| 7.00% | $345,332 | $2,333.33 |
| 7.50% | $331,123 | $2,333.33 |
| 8.00% | $317,801 | $2,333.33 |
Your current rate is highlighted. Even small rate changes significantly affect affordability.
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How to Use the Home Affordability Calculator
This calculator determines the maximum home price you can afford based on your income, existing debts, and loan terms. It uses the industry-standard debt-to-income (DTI) rules that lenders use to qualify borrowers, giving you a realistic picture of your buying power before you start shopping.
Income and debts: Enter your annual gross (pre-tax) household income — include both spouses if buying together. For monthly debts, include minimum payments on car loans, student loans, credit cards, and any other recurring obligations. Do not include current rent (that goes away when you buy) or utilities and subscriptions (lenders do not count those).
Loan details: Set your down payment as a percentage of the home price, the mortgage interest rate, and the loan term. A 20% down payment avoids PMI but is not required — many buyers put 5-10% down. The interest rate should be the current market rate for your credit profile. The calculator solves backwards from your maximum monthly payment to find the highest home price that keeps you within the DTI limits.
Housing costs: Property tax rates vary by location — check your county assessor's website for the actual rate. Enter monthly homeowner's insurance and any HOA fees. These non-mortgage costs reduce the amount available for principal and interest, so they directly affect your maximum price.
Reading the results: The maximum home price at the top is your headline number. The payment breakdown shows exactly how the monthly payment splits among P&I, taxes, insurance, and HOA. The DTI check confirms which rule (front-end or back-end) is your binding constraint. The rate sensitivity table shows how your buying power changes with different interest rates — useful for timing your purchase or comparing lender offers.
Frequently Asked Questions
What is the 28/36 rule?
The 28/36 rule is a guideline used by most conventional mortgage lenders to determine how much you can afford. The front-end ratio (28%) says your total housing costs — mortgage payment, property taxes, insurance, and HOA — should not exceed 28% of your gross monthly income. The back-end ratio (36%) says your total monthly debts — housing costs plus car loans, student loans, credit card minimums, etc. — should not exceed 36% of gross income. This calculator uses both rules and tells you which one is the binding constraint for your situation.
How much house can I afford with a $100,000 salary?
With a $100,000 salary, the 28% rule allows about $2,333/month for housing costs. At a 6.5% interest rate with 20% down, this translates to roughly a $350,000-$400,000 home depending on your property tax rate and insurance costs. However, your existing debts significantly affect this number — the back-end ratio may be the binding constraint if you have car payments, student loans, or other obligations. Enter your actual numbers in the calculator to get a precise answer.
Does this calculator account for all costs of homeownership?
This calculator accounts for the costs that lenders evaluate when qualifying you: principal, interest, property taxes, homeowner's insurance, and HOA fees (PITI + HOA). It does not include maintenance (typically 1% of home value per year), utilities, or the opportunity cost of your down payment. The max price shown is what a lender would approve — what you should actually spend may be lower depending on your comfort level and other financial goals.
How does my down payment affect affordability?
A larger down payment increases your maximum home price in three ways: it reduces the loan amount (and therefore the monthly payment), it may qualify you for a better interest rate, and it eliminates private mortgage insurance (PMI) if you put 20% or more down. However, a larger down payment also means less cash for closing costs, emergency funds, and other investments. The calculator lets you experiment with different down payment percentages to find the right balance.
What if my DTI ratios are different from 28/36?
Different loan types allow different ratios. FHA loans often allow up to 31/43, VA loans are more flexible at 41% back-end with no strict front-end limit, and some conventional lenders go up to 45% or even 50% back-end for borrowers with strong credit, substantial reserves, and low-risk profiles. You can adjust the ratios in this calculator to match your specific lender's guidelines. Be cautious about using higher ratios — just because a lender approves you does not mean the payment will be comfortable.
How much does the interest rate affect how much house I can afford?
Interest rates have an enormous impact on affordability. A 1% rate increase on a 30-year loan reduces your buying power by roughly 10%. For example, at 5.5% you might afford a $420,000 home, but at 7.0% that drops to about $355,000 — a $65,000 difference from just 1.5% in rate. The interest rate sensitivity table at the bottom of theresults shows exactly how rate changes affect your max price and monthly payment.