Home Affordability Calculator
"How much house can I afford" has two answers: what a lender will approve, and what a payment you can actually live with. They are not the same number, and the gap between them is where house-poor buyers are made. This calculator works the way underwriters do, with the 28/36 rule — housing costs capped at 28% of gross monthly income, and housing plus all other debt payments capped at 36% — and it shows you which of the two limits is actually binding for your situation, because that decides whether paying off a car loan or saving a bigger down payment moves the needle. From the binding monthly budget it solves backwards through taxes, insurance and PMI to a maximum price, and estimates closing costs on top, because the cash side of the purchase surprises almost everyone.
The short answer
Lenders size you with the 28/36 rule: housing up to 28% of gross income, all debts up to 36%. On $7,000 a month that is a $1,960 housing ceiling — which, with $60,000 down at 6%, solves to a price near $365,000 once tax, insurance and PMI are counted.
Household total, before tax.
Car, student loans, card minimums.
Below 20% of the price, PMI shrinks the budget.
Optional — tighten the budget where tax is high.
Max home price
$365,669.16
Bound by the 28% rule: housing may take $1,960.00 of your income.
- Max loan amount
- $305,669.16
- Estimated closing costs (3%)
- $10,970.07
- Monthly housing budget
- $1,960.00
16.4% down + PMI $127.36/mo until 20% equity.
Lender fees, title, appraisal and prepaids — cash on top of the down payment.
Front-end 28% allows $1,960.00; back-end 36% allows $2,520.00 after debts.
The 28/36 ratios are conventional lender guidance, not a law — some programs allow more. Lenders also weigh credit, reserves and income stability; treat this as the honest ceiling, not the target.
How to use Home Affordability Calculator
- 1
Enter your gross monthly income
Use the household figure before tax — underwriting does. Include stable, documentable income; leave out bonuses that are not guaranteed.
- 2
List your monthly debt payments
Car loans, student loans, credit card minimums, child support. These feed the back-end 36% test and can shrink the budget even when income is high.
- 3
Add your down payment and rate assumptions
Enter the cash you have for the down payment, the rate you expect, and property tax and insurance for your area. The result names the binding limit and the maximum price it supports.
Why use this tool
- Shows the front-end and back-end budgets side by side and names the binding one
- Solves the price ceiling backwards through PMI, which depends on the price itself
- Accounts for existing debts, so a car payment is priced into the house budget
- Closing-cost estimate on top of the down payment — the cash you actually need
- Private by design — income and debts never leave your browser
Frequently asked questions
- What is the 28/36 rule?
- A conventional underwriting guideline: keep housing costs — mortgage payment plus tax, insurance and any HOA — at or below 28% of gross monthly income, and housing plus all other debt payments at or below 36%. On $7,000 a month that is a $1,960 housing ceiling and a $2,520 all-in ceiling. The smaller of the two, after your debts, is what sets your budget.
- Why does $7,000 of income and $60,000 down only buy a ~$365,000 house?
- Because the monthly budget binds before the cash does. A $1,960 housing budget minus roughly $500 tax, $100 insurance and $127 PMI leaves about $1,233 for principal and interest — which at 6% over 30 years supports roughly a $305,000 loan. Add the $60,000 down payment and the price ceiling lands near $365,669. The calculator shows each subtraction so you can see where the budget goes.
- What counts as debt in the back-end ratio?
- Payments that appear on your credit report: car loans, student loans, credit card minimum payments, personal loans and court-ordered support. It does not include utilities, phone bills, health insurance or your current rent — though dropping rent to take on a mortgage is exactly why the housing test exists separately.
- Do all lenders use 28/36?
- It is the classic conventional guideline, and automated underwriting can approve ratios above it when credit, reserves and down payment are strong. FHA guidelines typically run 31% and 43%, and VA loans lean on residual income rather than a rigid front-end number. Treat 28/36 as the floor of conservative and the program rules as the ceiling of possible.
- How much cash do I need besides the down payment?
- Closing costs — lender fees, title, appraisal, prepaid tax and insurance — typically run 2% to 5% of the price. The calculator estimates 3%: $10,970 on a $365,669 purchase. On top of that, keep a reserve; a payment that leaves nothing for a broken water heater is a payment you cannot actually afford.
- Does a bigger down payment change what I can afford?
- It changes the price a given monthly budget can support — more cash means a smaller loan for the same payment — and at 20% down it removes PMI entirely, which frees roughly $100-130 a month on a mid-priced loan. It does not change the monthly budget itself; only income and debts set that.
- Is my income data sent anywhere?
- No. The calculation runs in your browser and nothing is transmitted or stored. Income and debt figures are the raw material of identity theft, which is exactly why no sign-up or upload belongs in an affordability check.
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