House Affordability Calculator
Find out how much house you can afford using the 28/36 rule.
What is House Affordability?
House affordability measures how much you can safely spend on a home without overextending your finances. Lenders commonly use the 28/36 rule to evaluate mortgage applications.
How to Use This Calculator
- Enter your annual gross income and existing monthly debt payments.
- Enter your planned down payment, mortgage rate, loan term, property tax rate, and insurance.
- Click Calculate to see your maximum affordable house price and estimated monthly payment.
Frequently Asked Questions
What is the 28/36 rule?
The 28/36 rule suggests spending no more than 28% of gross monthly income on housing costs, and no more than 36% on total debt payments including housing.
Does this include PMI?
This calculator does not include PMI. If your down payment is less than 20%, you should add estimated PMI to your monthly costs for a more conservative estimate.
Should I use gross or net income?
Lenders use gross income for qualification, but you should also evaluate affordability based on your net (take-home) pay to ensure comfort in your budget.
What if I have no other debt?
With no debt, your housing budget may be limited primarily by the 28% front-end ratio, though some lenders may allow flexibility up to the 36% total limit.