Enter your income, existing debts, and down payment to see a comfortable home price range, based on the standard 28/36 lending rule.
Based on the 28/36 rule: no more than 28% of gross income toward housing, and no more than 36% toward all debt combined.
Most lenders use the 28/36 rule as a starting guideline: your housing payment (principal, interest, taxes, and insurance) shouldn't exceed 28% of your gross monthly income, and your total debt payments — housing plus everything else, like car loans and credit cards — shouldn't exceed 36%. This calculator finds the lower of those two limits, then works backward to the home price that fits within it.
Once your maximum monthly payment is set, the calculator subtracts your estimated property tax and insurance, then solves for the loan amount your remaining budget supports at your interest rate and term. Adding your down payment back in gives the estimated home price.
Two people with the same salary can qualify for very different loan amounts if one has significant car payments or credit card debt and the other doesn't. If your other monthly debts are high, paying some of them down before house hunting — see our Credit Card Payoff Calculator — can meaningfully increase how much home you qualify for.
Is 28/36 a hard rule?
No. It's a common guideline, but actual lending limits vary by lender, loan type, and your credit profile. Some borrowers qualify for higher ratios; others are held to stricter limits. Treat this as a planning estimate, not a guarantee.
Does this include PMI?
Not directly. If your down payment will be under 20%, budget some additional room for private mortgage insurance — see the Mortgage Calculator for a full PITI + PMI breakdown once you have a specific home price in mind.
What counts as "other monthly debts"?
Recurring payments like car loans, student loans, minimum credit card payments, and personal loans. It does not include everyday expenses like groceries or utilities.