House Affordability Calculator
Find out how much house you can afford based on your income, debts, and down payment. Uses the 28/36 rule and current mortgage rates to estimate your home-buying budget.
How Much House Can You Afford?
Enter your gross monthly income, existing monthly debts, down payment amount, and expected interest rate to get a realistic home price range based on standard lending guidelines.
- 28/36 rule: Monthly housing costs ≤ 28% of gross income; total debt ≤ 36%
- Max loan amount: Based on income, debts, and debt-to-income ratio
- Target home price: Loan amount plus your down payment
- Monthly payment breakdown: Principal, interest, estimated taxes, and insurance
The 28/36 Rule Explained
- Front-end ratio (28%): Your monthly housing payment (principal + interest + taxes + insurance) should not exceed 28% of gross monthly income — e.g., $8,000/month income → max $2,240 housing payment
- Back-end ratio (36%): All monthly debt payments (housing + car + student loans + credit cards) should not exceed 36% of gross income — e.g., $8,000/month → max $2,880 total debt
- Lender flexibility: FHA loans allow DTI up to 43–50%; conventional loans typically cap at 45%; the 28/36 rule is conservative but reduces financial stress
- Pre-approval vs. affordability: A lender may approve you for more than the 28/36 rule suggests — approval is the ceiling, not the target
Other Costs to Factor In
- Property taxes: Typically 0.5–2% of home value annually — varies widely by location (New Jersey ~2.2%, Hawaii ~0.3%)
- Homeowners insurance: Typically $1,000–2,500/year depending on home value and location
- PMI: Required if down payment is under 20% — typically 0.5–1.5% of loan amount annually, canceled once you reach 20% equity
- HOA fees: If applicable, add $200–800+/month to your true housing cost
- Maintenance: Budget 1–2% of home value annually for repairs and upkeep
Frequently Asked Questions
How much income do I need to afford a $400,000 house?
At 7% interest with 10% down ($40,000), the loan is $360,000 with a principal and interest payment of ~$2,395/month. Adding estimated taxes ($500), insurance ($150), and PMI ($250) gives ~$3,295/month. Under the 28% rule, you'd need ~$11,800/month gross income (~$141,600/year). Under the more lenient 36% back-end ratio with no other debts, ~$9,150/month ($110,000/year) qualifies — but leaves little buffer. These are estimates; actual requirements depend on your credit score, lender, and loan type.
Does the affordability calculator account for credit score?
The calculator uses the interest rate you enter — your credit score directly affects what rate you'll qualify for. A 760+ score typically gets the best conventional rates; a 620–659 score may pay 1–2% more. On a $300,000 loan, a 1% rate difference costs ~$170 more per month and ~$60,000 more over 30 years. Get a mortgage pre-approval to see your actual rate before house hunting.