Home Affordability Calculator
How much house can you afford? Calculate your home buying budget based on income, debts, down payment, and lender guidelines using the 28/36 rule.
Home Affordability Calculator
Determine how much house you can afford
Income & Debts
$8,333/month
Car, student loans, credit cards
18.7% of home price
Loan Details
Monthly Payment Breakdown
Debt-to-Income Ratios
Recommended: ≤ 28%
Recommended: ≤ 36%
Key Information
- •28/36 Rule: Housing costs ≤ 28% of income, total debts ≤ 36%.
- •20% Down: Avoid PMI and get better rates with 20%+ down payment.
- •Closing Costs: Budget 3-5% of home price for closing costs.
📚 Learn About Home Affordability
📊 The 28/36 Rule
Lenders use the 28/36 rule: housing costs shouldn't exceed 28% of gross monthly income, and total debt shouldn't exceed 36%. This ensures you can afford your mortgage payment.
Example: $6,000/month income = max $1,680 housing (28%), max $2,160 total debt (36%).
💰 Down Payment Impact
- 20% Down: No PMI, better rates, lower payment
- 10-19% Down: PMI required, slightly higher rates
- 3-9% Down: Higher PMI, higher rates, larger payment
- FHA (3.5%): Lower credit requirements, MIP required
🏠 Hidden Homeownership Costs
Beyond mortgage payment (PITI), budget for maintenance (1-2% of home value annually), HOA fees, utilities, and repairs.
Example: $300k home = $3k-6k/year maintenance, plus $200-500/month utilities and HOA.
📈 Debt-to-Income Ratio (DTI)
Housing costs only (mortgage, taxes, insurance, HOA)
All debts (housing + car + student loans + credit cards)
✅ Improve Your Affordability
- Pay down existing debts to lower DTI
- Increase credit score for better rates (700+ ideal)
- Save larger down payment (20% = no PMI)
- Consider lower-cost areas or smaller homes
- Get pre-approved to know exact budget
⚠️ Common Mistakes
- Maxing out budget (leaves no emergency cushion)
- Forgetting closing costs (2-5% of purchase price)
- Ignoring maintenance and repair costs
- Not accounting for property tax increases
- Buying before paying down high-interest debt
How to Use This Home Affordability Calculator
Enter Income & Debts
Input your annual gross income and monthly debt payments (car, student loans, credit cards).
Add Down Payment & Rate
Enter your down payment amount and expected mortgage interest rate.
Review Maximum Price
See your maximum affordable home price, monthly payment, and DTI ratios.
Frequently Asked Questions
How much house can I afford with my salary?
A general rule is that you can afford a home 2.5 to 3 times your annual gross income. For example, with a $80,000 salary, you could afford a $200,000-$240,000 home. However, this depends on your down payment, debts, interest rates, and the 28/36 rule. Use our calculator to get a personalized estimate based on your specific financial situation.
What is the 28/36 rule for home buying?
The 28/36 rule is a guideline lenders use to determine how much you can borrow. The "28" means your housing costs (mortgage, taxes, insurance, HOA) shouldn't exceed 28% of your gross monthly income. The "36" means your total debt payments (housing + car + student loans + credit cards) shouldn't exceed 36% of gross income. This ensures you can comfortably afford your mortgage.
How much should I put down on a house?
Ideally, put down 20% to avoid PMI (private mortgage insurance) and get better interest rates. However, many buyers put down less: FHA loans require only 3.5%, conventional loans can be as low as 3%. A larger down payment means lower monthly payments and less interest paid over time. Balance your down payment with keeping an emergency fund (3-6 months expenses).
What other costs should I budget for when buying a home?
Beyond the mortgage payment, budget for: closing costs (2-5% of purchase price), property taxes (1-2% annually), homeowners insurance ($1,000-3,000/year), HOA fees (if applicable), maintenance and repairs (1-2% of home value annually), utilities ($200-500/month), and an emergency fund for unexpected repairs. Don't forget moving costs and initial furnishings.