Home Affordability Calculator

How much house can I afford? This home affordability calculator works it out from your income, your monthly debts, your down payment and the rate — using the 28/36 rule lenders use as a first check.

Your money

Income, debts and savings decide how much house you can afford.

Gross annual income ($) Your gross pay for the year, before tax, in dollars ($). Monthly debt payments ($) Car loans, student loans, credit cards and other debts, per month, in dollars ($). Down payment saved ($) What you have saved for a down payment, in dollars ($).

The loan

The rate and term set how much loan each dollar of monthly payment buys.

Interest rate (%) Annual interest rate, in percent (%) — an example rate, not a live market rate. Loan term How long you take to pay the loan off. Property tax rate (% of price per year) Property taxes as a percent (%) of the home price per year. 1.1% is an example. Homeowners insurance per year ($) Homeowners insurance per year, in dollars ($).

How to use this calculator

Enter your gross annual income and your monthly debt payments.
Enter the down payment you have saved.
Enter the interest rate, the loan term, the property tax rate and insurance.
The calculator shows the most expensive home you can afford, the biggest loan that fits, and what the monthly payment would be.

Formula and method

The 28/36 rule says housing should cost no more than 28% of gross monthly income, and housing plus all other debts no more than 36%. The calculator takes the smaller of those two limits as your monthly housing budget, then takes off property taxes and insurance to leave the amount for principal and interest — and works backwards through the amortization formula to the biggest loan that payment buys. If the down payment is under 20% of the price, a PMI estimate of 0.5% of the loan per year is taken off too. Max home price = max loan + down payment.

Worked example

$80,000 a year is $6,666.67 a month. 28% of that is $1,866.67, and 36% minus $400 of debts is $2,000.00, so the housing budget is the smaller number, $1,866.67 a month. At a 6.5% example rate over 30 years, with a 1.1% property tax rate and $1,800 a year of insurance, that buys a $259,492.69 home with a $219,492.69 loan and a $40,000 down payment. The monthly split is principal and interest $1,387.34, taxes $237.87, insurance $150.00 and PMI $91.46.

On $100,000 a year with no debts and $60,000 down, the same method gives a $338,067.62 home with a $278,067.62 loan.

Frequently asked questions

How much house can I afford on $80,000 a year?

With $400 a month of debts and $40,000 down, the worked example above comes to a $259,492.69 home at a 6.5% example rate over 30 years. With no debts the same income affords more — run your own numbers above.

How much house can I afford on $100,000 a year?

With no monthly debts and $60,000 down, this calculator gives a $338,067.62 home at a 6.5% example rate over 30 years. Your debts, down payment and the rate you are quoted all move the answer.

What is the 28/36 rule?

It is a rule of thumb many lenders use: spend no more than 28% of gross monthly income on housing (mortgage, taxes, insurance, PMI and HOA), and no more than 36% of gross monthly income on housing plus all other debts. It is a first check, not a lender's final decision.

Does my debt lower how much house I can afford?

Yes. Every dollar of monthly debt payments cuts the housing budget under the 36% part of the rule. Paying a debt off before you buy can raise the home price you can afford.

How much down payment do I need?

There is no single number. 20% down avoids PMI, but many buyers put down less — 10% down on a $400,000 home is $40,000. Less down means a bigger loan, a bigger monthly payment and PMI. Use the down payment calculator to compare.

Sources and method. Standard amortization formula: monthly rate r = annual rate / 12, n = years × 12, payment M = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1). PMI usually ends when the loan balance reaches 80% of the home value (Consumer Financial Protection Bureau guidance). Affordability uses the 28/36 rule of thumb used by many lenders. Rates in examples are examples only, not live market rates. Results are estimates, not financial advice.

Estimate, not financial advice. This calculator uses the standard amortization formula and the numbers you type in. It is not a loan offer and not financial advice. A lender will check your credit, income and debts and quote its own rate and fees before you borrow.