House Affordability Calculator
Find out how much house you can afford based on your annual income, monthly debts, down payment, and interest rate. Uses the 28/36 rule used by most lenders. Free and private.
How Home Affordability Is Calculated
Lenders use two key ratios to determine how much you can borrow. The "front-end ratio" (28% rule) says your housing costs should not exceed 28% of gross monthly income. The "back-end ratio" (36% rule) says total debts (housing + all other debts) should not exceed 36%. This calculator uses both rules and shows you the lower (more conservative) result.
Affordability Rules
Max Housing Payment = Gross Monthly Income × 0.28
Max Total Debt Payment = Gross Monthly Income × 0.36
Max Housing (back-end) = Max Total Debt − Existing Monthly Debts
Max Home Price = Max Loan Amount + Down Payment
Example
$85,000 income, $500/mo debts, 20% down, 6.5% rate, 30 years
- Max home price: approximately $320,000-$350,000
The 28/36 Rule Explained
The 28/36 rule is a guideline, not a hard rule. Some lenders allow higher ratios (especially FHA loans at 43% back-end). However, staying within 28/36 gives you a comfortable margin and lower financial stress.