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. The housing payment includes principal, interest, property tax, insurance, and PMI.
Most lenders use the 28/36 rule as a starting guideline: your housing payment (principal, interest, taxes, insurance, and mortgage 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, insurance, and, if your down payment is under 20%, private mortgage insurance (PMI). It 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 can meaningfully increase how much home you qualify for. Our Credit Card Payoff Calculator can help you plan that, and the debt-to-income calculator shows how lenders see your ratio.
With the default numbers above, $85,000 in annual income and $300 in other monthly debts, the 28% housing limit works out to $1,983.33 a month, while the 36% total-debt limit leaves $2,250 once that $300 is subtracted. Since $1,983.33 is the smaller number, the housing limit is what caps this borrower's affordability.
The $30,000 down payment is less than 20% of the price, so PMI applies. Solving for the price that fits within $1,983.33 gives an estimated home price of about $262,700 with a $232,700 loan, or 11.4% down. The monthly payment breaks down as $1,509.47 in principal and interest, $240.83 in property tax, $116.67 in insurance, and $116.36 in PMI, which adds up to the $1,983.33 limit. If PMI were ignored, the calculator would suggest a price near $278,400, about $15,700 too high.
Here is how the default example responds when you change one input at a time:
For someone with little other debt, the 28% housing rule is usually the binding constraint. For someone with a car loan and credit cards, the 36% overall rule often takes over instead.
The result is the most a lender's guideline would allow, not what you should necessarily spend. Consider leaving room for the costs the calculator does not include: maintenance and repairs, HOA dues, closing costs, moving expenses, and a healthy emergency fund. Many buyers aim for a price comfortably below their maximum, especially if their income may change. To test a specific home, use the Mortgage Calculator for the full monthly cost, and check the budget calculator to see how it fits with your everyday spending.
If you are still deciding whether buying makes sense at all, compare it with renting using the rent vs. buy calculator, and read about whether to pay off debt before buying a house. For a step-by-step walk-through of the same numbers, with examples at different incomes, see how much house can I afford.
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?
Yes. When your down payment is under 20% of the home price, the calculator adds PMI at the rate you enter (0.6% a year by default) and reduces the price accordingly. See the Mortgage Calculator for a full breakdown, including when PMI can be removed, 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.
Does a bigger down payment increase how much house I can afford?
Yes, in two ways: it directly increases the home price you can reach at the same loan amount, and it lowers your loan balance so more of your fixed monthly budget goes toward principal and interest instead of PMI. Putting 20% down also typically avoids private mortgage insurance entirely.
How does the loan term affect my affordability?
A longer term (30 years vs 15) spreads the same loan amount into smaller monthly payments, which raises the home price your monthly budget supports, though you pay more total interest over the life of the loan. This calculator lets you compare terms directly by switching the loan term option.
What if I have no other monthly debts?
With $0 in other debts, the 36% total-debt limit and the 28% housing limit are far apart, so the 28% housing rule almost always ends up being the binding constraint. That means paying off debt beyond that point won't increase how much house you can afford, since it's already limited by the income-based housing cap, not the debt cap.
Should I buy at the maximum price the calculator shows?
Not necessarily. The maximum is what a lending guideline allows, and it does not leave room for maintenance, HOA dues, closing costs, or unexpected expenses. Many buyers choose a price below the maximum so that the payment feels comfortable even if their finances change.
Does this include closing costs and HOA dues?
No. Closing costs are a one-time expense, typically 2-5% of the loan amount, and HOA dues are an extra monthly cost that lenders usually count as part of your housing payment. If a home has HOA dues, subtract them from your monthly budget before using the result.