Capital Calculators

Home Affordability Calculator

Estimate the home price that fits your income, debts and down payment. The calculator uses the 28% housing and 36% total debt rule and shows your maximum loan and maximum monthly housing payment.

  • Free
  • Private, runs in your browser
  • Instant results

Your numbers

Before tax.

$

Enter a number.

Car, cards and student loans. Leave out rent.

$

Enter a number.

$

Enter a number.

%

Enter a number between 0 and 20.

years

Enter a number between 1 and 40.

Per year, as a share of the home value.

%

Enter a number between 0 and 6.

Home price you can afford$334,541
Maximum loan
$284,541
Maximum monthly housing payment
$2,217
Principal & interest
$1,798
Limiting rule
28% housing rule

Total$2.2K
  • Principal & interest$1,798.4981%
  • Tax & insurance$418.1819%
Year-by-year table

How to use this calculator

  1. Yearly gross income. Your household income before tax.
  2. Monthly debt payments. Car loans, student loans, credit card minimums and other debts. Do not include your present rent or mortgage.
  3. Down payment. The cash you have for the purchase.
  4. Interest rate. The yearly mortgage rate you expect.
  5. Term. The length of the loan in years.
  6. Property tax and insurance. The combined yearly cost as a percentage of the home value. If the two together cost $4,500 a year on a $300,000 home, enter 1.5.

The results show the home price you can afford, the maximum loan, the maximum monthly housing payment and which of the two rules sets the limit.

Worked example

These are the starting values in the calculator above and the results they give. Change any input to see your own numbers.

Yearly gross income
$95,000
Monthly debt payments
$450
Down payment
$50,000
Interest rate
6.5%
Loan term
30 years
Tax and insurance
1.5%
Home price you can afford
$334,541
Maximum loan
$284,541
Maximum monthly housing payment
$2,217
Principal & interest
$1,798
Limiting rule
28% housing rule

How home affordability is calculated

The calculator applies a widely used guideline with two parts.

  • The 28% rule. Housing costs should take no more than 28% of gross monthly income. Housing costs here mean principal, interest, property tax and insurance.
  • The 36% rule. Housing costs plus all other debt payments should take no more than 36% of gross monthly income.

Your maximum housing payment is the lower of the two results. Take a gross income of $6,000 a month with $500 of other debt payments. The 28% rule allows $1,680. The 36% rule allows $2,160 in total debt, which leaves $1,660 for housing after the $500. The 36% rule is the limit, so the maximum housing payment is $1,660.

The calculator then finds the largest loan whose principal and interest, plus tax and insurance on the home, fit inside that payment. The home price is that loan plus your down payment.

H = lesser of (0.28 × I) and (0.36 × I − D); home price = L + down payment
H
maximum monthly housing payment
I
gross monthly income (yearly income ÷ 12)
D
monthly debt payments
L
largest loan whose principal, interest, tax and insurance fit within H

What changes how much you can afford

  • Income. Higher income raises both limits.
  • Existing debts. Every dollar of monthly debt can reduce the housing payment under the 36% rule. Paying off a loan may raise your price range.
  • Interest rate. A lower rate means the same payment supports a larger loan.
  • Term. A longer term also supports a larger loan, at the cost of more total interest.
  • Down payment. It is added directly to the price you can reach.
  • Tax and insurance. Higher costs take up more of the payment and leave less for the loan.

The result is an upper estimate based on a rule of thumb, not a loan approval. It leaves out closing costs, HOA fees, maintenance and your other spending. Many buyers choose to stay below the maximum. Read how much house can I afford for more, then test a specific price in the mortgage calculator.

Frequently asked questions

How much house can I afford on my salary?

A common guideline says housing costs should stay within 28% of gross monthly income, and housing plus other debts within 36%. The price that fits depends on your debts, down payment, interest rate, loan term and local tax and insurance costs. Enter your figures above for an estimate based on your own numbers.

What is the 28/36 rule?

It is a rule of thumb for housing affordability. The first number says your housing payment should be no more than 28% of gross monthly income. The second says all debt payments together, housing included, should be no more than 36%. The lower of the two results sets the maximum housing payment. It is a guideline, not a legal limit.

Does my existing debt reduce how much house I can afford?

It can. Under the 36% rule, other monthly debt payments are subtracted from the amount allowed for total debt, and what remains is available for housing. If your debts are small, the 28% rule is usually the limit instead and debt has no effect. The calculator tells you which rule is limiting your result.

How does the interest rate affect home affordability?

The rate decides how much loan a given monthly payment can support. At a lower rate, less of each payment goes to interest, so the same payment covers a larger loan and a higher home price. At a higher rate the reverse is true. Change the rate in the calculator to see how much the price range moves.

Should I buy a home at the top of my affordability range?

The figure shown is a ceiling from a general rule, not a target. It does not account for savings goals, childcare, travel, repairs or changes in income. Many people prefer a payment below the maximum to keep some room in their budget. Use the estimate as a starting point and compare it with your real monthly spending.

This calculator gives estimates for education only. It does not know your full situation and is not financial advice. Reviewed and updated November 15, 2026.