House Affordability Calculator

How much house can you afford?

Lenders don't decide what you can afford by the home price alone — they look at how the monthly payment compares to your income and existing debts. The standard yardstick is the 28/36 rule: your housing payment should stay under 28% of your gross monthly income, and all your debt payments combined (housing plus car, student loans, and credit cards) should stay under 36%. This calculator applies both limits, takes the lower of the two, and then works backward to the home price that payment can support.

What's included in the monthly payment

The estimated payment is PITI — principal, interest, taxes, and insurance. Principal and interest come from your loan amount, rate, and term. Property tax and homeowners insurance are added as a yearly percentage of the home's value, since both scale with the price of the house. The result is the realistic all-in payment, not just the loan repayment.

How to use it

• Annual income — your household's gross (pre-tax) income.
• Monthly debts — minimum payments on cars, student loans, and credit cards. The higher these are, the less house you can afford.
• Down payment — cash you put in up front; it's added on top of the loan to set the price.
• Rate & term — a lower rate or longer term lowers the monthly payment, raising the price you can afford.
• Tax & insurance rates — defaults are typical US averages; adjust them for your area.

Affordable vs. comfortable

The 28/36 rule is what lenders allow, not necessarily what's comfortable. Borrowing the maximum leaves little room for savings, repairs, or a drop in income. Many buyers deliberately target a payment below the limit. Treat this number as a ceiling, then choose a price you're happy living with.

FAQ

Does this include PMI?

Not separately. If your down payment is under 20% of the price, lenders usually add private mortgage insurance, which would raise the payment and slightly lower what you can afford. A down payment of 20% or more avoids PMI entirely.

Why did my affordable price barely change when I added a down payment?

A larger down payment raises the price you can buy, but the monthly payment is still capped by your income, so the loan portion stays roughly the same — the down payment mostly adds to the price on top of that fixed loan.

Is gross or net income used?

Lenders use gross (pre-tax) income for the 28/36 rule, so this calculator does too. Remember your actual take-home pay is lower, which is why borrowing below the maximum is often wise.