Home Affordability Calculator
Find your max monthly housing budget and the home price it supports, using the classic 28/36 lending rule.
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Affordable home price
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Budget is total PITI — taxes, insurance, and HOA come out of it.
How it works
Lenders use two ratios. The front-end ratio caps housing costs at 28% of gross monthly income; the back-end ratio caps all debt at 36%:
That monthly budget is converted to a loan amount with the present-value-of-annuity formula, then the down payment is added back:
Remember this is a lending ceiling, not a recommendation — and the budget must also cover property tax, insurance, and HOA, which reduce the price you can actually afford.
Frequently asked questions
What is the 28/36 rule?
A classic mortgage guideline: spend no more than 28% of gross monthly income on housing (PITI), and no more than 36% on all debt payments combined. Lenders often use these ratios when qualifying borrowers.
Does the affordable price include taxes and insurance?
The budget shown is your total housing allowance, so property tax, homeowner's insurance, and HOA dues eat into it. The true affordable purchase price is lower in high-tax areas because less of the budget goes to principal and interest.
Should I buy at the maximum I can afford?
Not necessarily. The 28/36 rule is a ceiling used by lenders, not a recommendation. Buying below your maximum leaves room for savings, repairs, and life changes — many advisors suggest staying closer to 25% of take-home pay.
How does my down payment change affordability?
Dollar for dollar: a bigger down payment raises the affordable purchase price by the same amount without changing your monthly payment. It can also remove private mortgage insurance (PMI) if you reach 20% down.