How Much House Can You Afford?
This calculator estimates a comfortable home price range based on the common "28/36 rule" used by many lenders — a widely referenced affordability guideline in mortgage lending.
The 28/36 Rule Explained
This guideline suggests your total housing costs (mortgage, taxes, insurance) shouldn't exceed 28% of your gross monthly income, and your total debt payments (including housing) shouldn't exceed 36%. This calculator uses the 28% figure to estimate your maximum comfortable monthly payment, then works backward to a home price.
Why Your Debt Matters
Existing monthly debts — car payments, student loans, credit cards — reduce how much lenders will typically approve you for, since they factor into your overall debt-to-income ratio. Paying down debt before applying for a mortgage can meaningfully increase your approved loan amount.
This Is a Starting Point, Not a Pre-Approval
Actual lending decisions depend on your credit score, employment history, assets, and the specific lender's guidelines, which can vary. Use this calculator to get a realistic price range before house hunting, then get pre-approved by a lender for an exact figure.
Frequently Asked Questions
Does this include property tax and insurance?
The 28% figure is meant to cover your total housing payment including taxes and insurance, not just principal and interest, though this calculator provides a simplified estimate.
Why did my debt reduce my affordability so much?
Lenders look at your total monthly debt obligations, not just housing costs. High existing debt payments leave less room in your budget for a mortgage payment under standard affordability guidelines.
Can I qualify for more than this estimate?
Possibly — some lenders allow higher debt-to-income ratios depending on your credit profile and loan type. This calculator gives a conservative, widely-used benchmark rather than the maximum you could theoretically qualify for.