How Much House Can I Afford? Affordability Calculator

Lenders tell you what you can borrow. This tells you what you can comfortably afford.

How much house can I afford?

Gross yearly income$Monthly debt payments$/moCash for down payment$Interest rate%Max debt-to-income%

Estimates for learning only — not a loan offer. Real numbers come from a lender's Loan Estimate.

How this calculator works

It uses two classic lender rules. The 28% rule says your housing payment should stay under 28% of your gross monthly income. The debt-to-income (DTI) rule says all your debts, including the new mortgage, should stay under a set share of income — 36% is a comfortable target, and many lenders allow higher.

The calculator takes the lower of those two limits, then works backwards to the highest home price that fits, including an estimate for property tax, insurance and PMI.

Myth buster“The bank approved me for $500k, so I can afford $500k.” Not necessarily. Approval is about the lender’s risk. Your budget also has to cover repairs, savings, kids, travel and life.

Ways to afford more house

Pay down credit cards or car loans to lower your DTI.
Look into first-time buyer and down payment assistance programs in your state.
Consider FHA, VA or USDA loans if you qualify.

Quick questions

What DTI do lenders allow?

Many conventional lenders look for 36% to 45%, and some loan programs go higher with strong credit or savings. Lower is always safer for you.

Should I use gross or take-home pay?

Lenders use gross (before-tax) income, so this calculator does too. For your own comfort, also check the payment against your take-home pay.

More free tools: see all calculators.