🔑Home Affordability Calculator
How much house can you afford? This calculator uses the lender 28/36 rule — your income, existing debts and down payment — to estimate a realistic home price.
Last updated: · Reviewed by The CalcWise Team
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How to use this calculator
- Enter your gross annual income and your total existing monthly debt payments.
- Add your planned down payment, the interest rate, and the loan term.
- Calculate to see the estimated home price and maximum loan you can comfortably afford.
How it works
Lenders commonly use the 28/36 rule: your housing payment should stay under 28% of gross monthly income, and your total debt payments under 36%. This calculator applies both limits and uses the lower one to keep your estimate realistic.
It also reserves part of your housing budget for property taxes, insurance and PMI, so the home price shown is one you can actually carry — not just the largest loan a lender might approve.
Example: On a $90,000 income with $500 in monthly debts and $40,000 down at 6.5%, you could afford a home priced around $300,000–$340,000, depending on taxes and insurance.
Frequently asked questions
What is the 28/36 rule?
A guideline lenders use: spend no more than 28% of gross monthly income on housing, and no more than 36% on total debt including the mortgage.
Does this guarantee loan approval?
No. It is an estimate. Actual approval depends on your credit score, employment, the property, and each lender's specific criteria.