How much house can you afford based on your income and debts?
Leave property tax and insurance blank for estimates based on home price.
Estimated home prices based on annual income (assuming 6.5% rate, 30-year, 10% down, no other debts):
This tool estimates how much house you can comfortably afford based on your income, existing debts, and loan terms. It applies the widely used 28/36 rule, a guideline that lenders and the CFPB reference when judging whether a monthly payment fits a household budget. Rather than telling you the most a bank might approve, it aims at a payment that leaves room for the rest of your financial life.
The 28/36 rule sets two ceilings. The front-end ratio says your monthly housing payment should be at most 28 percent of your gross monthly income. The back-end ratio says your total monthly debt payments, including the mortgage plus car loans, student loans, credit cards, and similar obligations, should be at most 36 percent of gross monthly income. Your affordable payment is limited by whichever ratio binds first. In plain terms, front-end limit equals income times 0.28, and back-end limit equals income times 0.36 minus your existing monthly debts.
Suppose your gross monthly income is $6,000 and you already pay $500 a month toward other debts. The front-end ceiling is $6,000 times 0.28, which is $1,680. The back-end ceiling is $6,000 times 0.36, which is $2,160, minus the $500 you already owe, leaving $1,660 available for housing. Since $1,660 is lower than $1,680, the back-end ratio binds first, so your target housing payment is about $1,660. If a hypothetical loan at some assumed rate and a 30 year term produced a payment near that figure on a given loan amount, that loan size would be roughly your affordable ceiling.
Enter your gross monthly income before taxes, your total existing monthly debt payments, your planned down payment, an interest rate you want to model, and the loan term in years. The calculator applies both ratios, reports the binding limit, and translates the allowable payment into an estimated loan amount and home price.
The 28/36 rule is a guideline, not a lending decision. Your housing payment should also include property taxes, homeowners insurance, and any HOA dues or mortgage insurance, which vary widely by location and can push a payment above the estimate. Lenders weigh credit score, employment history, and reserves that this tool does not model. Comfortable is personal, so a household with high savings goals or variable income may prefer to stay well under these ceilings.
What counts as gross monthly income? It is your total income before taxes and deductions, including salary, reliable bonuses, and other steady income sources you can document.
Does the payment include taxes and insurance? A complete housing payment includes principal, interest, property taxes, and insurance, often called PITI. Estimate those separately and keep the total within the 28 percent front-end limit.
Why does the back-end ratio matter? It captures your whole debt load. Two people with the same income can afford very different mortgages if one carries large car or student loan payments.
Can I exceed these ratios? Some loan programs allow higher ratios with compensating factors, but stretching your budget raises risk. Treat the 28/36 figures as a prudent target rather than a hard maximum.
Disclaimer: This calculator provides educational estimates using standard formulas, not personalized financial advice. Lending terms, interest rates, and your individual circumstances vary. Consult a licensed mortgage, financial, or tax professional before making decisions.
Sources: Consumer Financial Protection Bureau. Qualified Mortgages and the debt-to-income limit