Affordability calculator
How much house can I afford?
Based on your income, existing debts, and down payment, using the standard 28/36 lending guideline lenders use to set your borrowing limit.
Your price range
DTI, explained
What's a debt-to-income ratio?
Your debt-to-income ratio, or DTI, compares your total monthly debt payments (including the new housing payment) to your gross monthly income. Lenders use it as one of the main tests for how much they'll let you borrow. The "Aggressive" figure above assumes you use the full 36% DTI most conventional lenders allow; the "Stretch" and "Affordable" figures leave more room below that ceiling.
Don't forget closing costs
Budget beyond the down payment
Closing costs typically run 2-5% of the home price, on top of your down payment, covering things like loan origination fees, appraisal, title insurance, and prepaid taxes/insurance. The closing cost range shown for each tier above is an estimate — your actual costs depend on your lender, location, and loan type.
How this works
The 28/36 rule, explained
Most conventional lenders use a version of the 28/36 rule as a starting guideline: your total housing payment, including principal, interest, taxes, and insurance, should generally stay under 28% of your gross monthly income. Your total monthly debt payments, including that housing payment plus any car loans, student loans, or credit cards, should generally stay under 36%.
This calculator applies both limits and uses whichever one is more restrictive for your situation, since that's the number a lender would typically use as your actual ceiling.
Why the conservative number matters
Qualifying for it vs affording it comfortably
The maximum price shown is what you could likely qualify for under standard guidelines, not necessarily what's comfortable. The conservative alternative uses a 25% housing ratio instead of 28%, which many financial planners suggest as a more comfortable long-term target, especially if your income is variable or you want more room for savings and unexpected expenses.
Once you have a target price range, use the payment calculator to see the exact monthly breakdown, including PMI and HOA dues if applicable.
Frequently asked
Affordability calculator FAQ
What is the 28/36 rule for home affordability?
It's a common lending guideline suggesting your housing payment stay under 28% of gross monthly income, and your total debt payments, including housing, stay under 36%.
Does this calculator use my take-home pay or gross income?
Gross annual income, before taxes — the figure lenders typically use for affordability and debt-to-income calculations.
Why is my maximum price lower than I expected?
Your result reflects both your target housing budget and your existing monthly debts. Car loans, student loans, and credit cards reduce how much of your income can go toward a mortgage payment under standard lending ratios.
Is this the same as pre-approval?
No. This is a planning estimate based on general guidelines. A real pre-approval involves a lender reviewing your actual credit, income documentation, and debts, and can differ from this estimate.