Enter Your Details

Annual Income ($)

Monthly Debt ($)

Down Payment ($)

Interest Rate (%)

Loan Term (Years)

28/36 Rule: Lenders typically allow up to 28% of gross monthly income for housing expenses, and total debt (including housing) should not exceed 36% of monthly income.

Common Scenarios

Your Affordability Estimate

Estimated House Price
$300,000
Maximum home price you can afford

Monthly Mortgage

$1,500

Principal & interest only

Loan Amount

$280,000

After down payment

28/36 Rule Breakdown

Monthly Income

$6,667

Max Housing (28%)

$1,867

Current Debt

$500

Max Total Debt (36%)

$2,400

Home Price $300,000

Down Payment $20,000

Loan Amount $280,000

Interest Rate 6%

Loan Term 30 Years

Monthly Payment $1,500

Principal & Interest

$1,500

Property Tax (Est.)

$375

Home Insurance

$125

* Estimated monthly payment includes taxes and insurance (approx. 1.5% of home value annually)

Frequently Asked Questions

What is the 28/36 rule?

The 28/36 rule states that your monthly housing costs shouldn't exceed 28% of your gross monthly income, and your total debt (including housing) shouldn't exceed 36% of your monthly income.

What's included in monthly payment?

The monthly payment shown includes principal and interest. Property taxes and insurance are estimates (typically 1-2% of home value annually).

How is the maximum house price calculated?

We calculate your maximum monthly housing payment (28% of income minus existing debt), then determine the loan amount based on interest rate and term, and add your down payment.

Should I put more down payment?

A larger down payment reduces your loan amount and monthly payment, and may help you avoid PMI (Private Mortgage Insurance) if you put down at least 20%.

How does interest rate affect affordability?

Higher interest rates increase your monthly payment, reducing how much house you can afford. A 1% rate change can affect affordability by 10-15%.

Is this calculator accurate?

This calculator provides a good estimate. For exact pre-approval amounts, consult with a lender who will consider your full financial profile.

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House Affordability Calculator - How Much Home Can You Buy?

Our House Affordability Calculator helps you determine how much home you can afford based on your income, monthly debts, down payment, and current interest rates. Whether you're a first-time homebuyer or looking to upgrade, this tool provides a realistic estimate of your home-buying budget.

How it works: Enter your annual income, monthly debt payments, down payment amount, interest rate, and loan term. We calculate your maximum affordable home price using the standard 28/36 rule that lenders use. The result shows your estimated house price, monthly payment, and detailed breakdown.

Perfect for: First-time home buyers, real estate investors, mortgage shoppers, financial planners, and anyone planning to purchase a home.