How much house can you afford? This home affordability calculator uses the debt-to-income (DTI) rules lenders rely on to estimate a comfortable home price and a stretch budget. Enter your gross income, monthly debts, down payment and mortgage rate. Property taxes, insurance, HOA dues and PMI are included so the payment is realistic.
Home Affordability Calculator
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The 28/36 rule, explained
A common guideline says your total housing payment shouldn’t exceed 28% of your gross monthly income, and all your debt payments, including housing, shouldn’t exceed 36%. Many lenders approve higher ratios, sometimes up to about 43% or more, but a higher DTI leaves less room for savings and surprises. The calculator shows both a comfortable and a stretch budget so you can see the difference.
Ways to afford more house
- Pay down monthly debts, especially car loans and credit cards, before you apply.
- Save a larger down payment to shrink the loan and avoid PMI at 20%.
- Improve your credit score to qualify for a lower rate.
- Look into first-time homebuyer programs and down payment assistance.
Frequently asked questions
Should I buy the most house I qualify for?
Usually not. Lenders approve what you can repay, not what fits your lifestyle. Budget for maintenance (often 1% or more of the home’s value a year), closing costs and an emergency fund.
Related: Mortgage Calculator, DTI Calculator, FHA Loans, All Financial Calculators.