Home Affordability Calculator
Free home affordability calculator using the 28/36 rule with your real income, debts, and local property taxes. No realtor bias — honest numbers only.
Max Home Price
$0
Monthly Payment
$0
Down Payment Needed
$0
DTI Ratio
0%
$
$30K$500K
%
3%50%
$
$0$5K
%
2%12%
$
$0$25K
$
$0$6K
$
$0$1K
Monthly Payment Breakdown
Formula Used
Max Monthly Housing = Gross Monthly Income × 0.28
Max Monthly Debt = Gross Monthly Income × 0.36
Max Mortgage Payment = Max Monthly Housing - Property Tax - Insurance - HOA
Max Home Price = Max Mortgage Payment × [(1+r)^n - 1] / [r(1+r)^n]
(reverse of the mortgage payment formula)
How This Home Affordability Calculator Works
This calculator uses the 28/36 rule — the same guideline mortgage lenders use — to determine how much house you can realistically afford.
The 28/36 Rule
- 28% for housing: Your total housing payment (PITI: Principal + Interest + Tax + Insurance) should not exceed 28% of gross monthly income
- 36% for total debt: All debt payments (housing + car + student loans + credit cards) should not exceed 36% of gross monthly income
Why Banks Approve More Than You Can Afford
Banks often pre-approve you for the maximum the 36% rule allows. But they don't account for retirement savings, emergency funds, childcare, or lifestyle. Use this calculator to find what actually fits your budget, not what a lender will give you.
Frequently Asked Questions
What is the 28/36 rule?
Spend no more than 28% of gross monthly income on housing (mortgage + tax + insurance + HOA), and no more than 36% on all debt including car loans, student loans, and credit cards.
Why can I afford less than the bank pre-approves?
Banks often approve you for the maximum payment you theoretically can make. They don't account for your actual lifestyle, savings goals, or emergency fund needs. Use the 28/36 rule for a realistic budget.