Home Affordability
Calculator
Enter your income and debts. See exactly how much house you can afford using the 28/36 rule.
Do not include rent — only recurring debt obligations.
Less than 20% of the home price triggers PMI (private mortgage insurance).
Buying and selling within 5 years rarely covers transaction costs.
Affordability by salary
See the exact home price range for common US salaries, pre-calculated using the 28/36 rule.
Frequently asked questions
What is the 28/36 rule for buying a home?
The 28/36 rule is the standard lenders use to evaluate whether you can afford a mortgage. The front-end ratio (28%) means your total monthly housing costs — principal, interest, property taxes, and insurance (PITI) — should not exceed 28% of your gross monthly income. The back-end ratio (36%) means all monthly debt payments combined, including housing and any existing debts like car loans or student loans, should not exceed 36% of gross monthly income. This calculator uses both limits and applies the more conservative of the two.
How does my down payment affect what I can afford?
A larger down payment directly increases the home price you can afford by reducing the loan amount — which lowers your monthly principal and interest payment. It also reduces or eliminates private mortgage insurance (PMI), which is required when your down payment is less than 20% of the home price. PMI typically costs 0.5% to 1% of the loan amount annually. A 20% down payment removes that cost entirely and gives you immediate equity in the home.
What other costs should I budget for beyond the mortgage?
Monthly homeownership costs go well beyond principal and interest. This calculator already estimates property taxes (1.1% annually, national average), homeowner's insurance (0.5% annually), and PMI if applicable. Beyond those, you should budget for HOA fees if the community has one (can range from $100 to $1,000+ per month), closing costs (typically 2-5% of the loan amount), maintenance (most experts recommend budgeting 1% of home value annually), and utilities. These can meaningfully affect your real affordability.
Should I get pre-approved before using this calculator?
Yes. This calculator gives you a solid estimate based on the 28/36 rule, but a mortgage pre-approval from a lender is the definitive number. Pre-approval involves a hard credit pull and a full review of your income, assets, and debts. Lenders may use different underwriting standards, offer different rates based on your credit score, and account for factors this calculator cannot — such as employment history, type of income (W-2 vs. self-employed), and the specific loan product. Use this calculator to understand your range, then get pre-approved to confirm the real number.