How Much House Can I Afford?

How this calculator works

Lenders look at two ratios. The front-end ratio is your total housing payment (principal, interest, property tax, insurance, HOA, and PMI) divided by your gross monthly income. The back-end ratio adds your other debt payments, such as car loans, student loans, and credit card minimums. The calculator finds the highest home price that keeps both ratios under the limits you choose.

The conservative 28/36 setting is a good definition of "comfortable." Many loan programs approve higher ratios, but a payment that's approvable isn't necessarily affordable once you account for taxes, savings, childcare, and maintenance, which often runs 1% to 2% of the home's value per year. For a salary-by-salary table and worked examples, read How much house can I afford?

Common questions

The 28/36 rule says your housing payment should be at most 28% of your gross monthly income, and all your debt payments combined should be at most 36%. It's a common starting point for mortgage lenders and a conservative guide for buyers.

Mortgage lenders use gross income, meaning before taxes and deductions. That's why your real monthly budget may feel tighter than the ratios suggest.

Every dollar of monthly debt payments reduces the housing payment allowed under the back-end ratio. Paying off a car loan or credit card before applying can noticeably raise the home price you qualify for.

Yes. If your down payment is less than 20% of the home price, the calculator adds private mortgage insurance at the rate you enter. FHA loans charge a different mortgage insurance premium, so results for FHA loans are approximate.

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