Free home affordability calculator: find out how much house you can afford based on income, debts, down payment, and interest rate. Uses the 28/36 DTI rule. Estimate your buying power today.
The calculator uses the 28/36 rule: your monthly housing costs should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36%. It factors in your income, existing debts, down payment, interest rate, property taxes, insurance, and HOA fees to determine the maximum home price you can afford.
The 28/36 rule is a common lending guideline. The front-end ratio (28%) means your monthly housing costs — including principal, interest, taxes, and insurance — should not exceed 28% of your gross monthly income. The back-end ratio (36%) means your total debt payments, including housing and other debts, should not exceed 36% of your gross monthly income.
A larger down payment increases your buying power in two ways: you need to borrow less, and if you put down 20% or more, you avoid Private Mortgage Insurance (PMI), which reduces your monthly payment. PMI typically costs 0.3%–1.5% of the loan amount annually and is required when the down payment is less than 20%.
Monthly debts include minimum credit card payments, car loans, student loans, personal loans, child support, alimony, and any other recurring debt obligations. Expenses like utilities, groceries, and entertainment are not counted as debts, though you should budget for them separately.