Home Affordability Calculator
Find a realistic home price from your income, debts, down payment and mortgage rate.
About the Home Affordability Calculator
Lenders commonly use the 28/36 rule: housing costs (mortgage, property tax, insurance) up to 28% of gross monthly income and all debts up to 36%. Some loan programmes allow more (FHA up to about 43–50%), but stretching leaves less room for saving, repairs and emergencies.
The formula
Budget = min(28% × income, 36% × income − debts); price = (budget + down × f) ÷ (f + tax rate)
Worked example
Example: Home you could afford = $407,976
- Inputs: Gross yearly household income: $110,000; Monthly debt payments (car, cards, loans): $550; Down payment saved: $66,000; Mortgage rate: 7.2%; Term: 33 years; Property tax + insurance (% of price a year): 1.7%; Max housing cost (% of income): 31%; Max total debt (% of income): 40%.
- Formula: Budget = min(28% × income, 36% × income − debts); price = (budget + down × f) ÷ (f + tax rate)
- Result: Home you could afford = $407,976
- Loan amount: $341,976
- Monthly housing budget: $2,842
- Down payment: 16.2%
Questions people ask
Is the 28/36 rule a law?
No, it's a guideline lenders use; actual approval depends on credit, savings and the loan type.
What else should I budget for?
Maintenance (about 1% of the home's value a year), HOA fees, utilities and closing costs.