Find out how much house you can afford based on your income, debts, and down payment
Lenders typically require a front-end ratio under 28% and back-end under 36%
This calculator estimates the home price you can afford from your income, existing debts, down payment, and current interest rates. It works the way lenders do — backwards from a maximum monthly payment based on debt-to-income (DTI) ratios.
The classic guideline is the 28/36 rule: housing costs at or below 28% of gross monthly income, and all debt payments combined at or below 36%. Lenders may approve more, but the rule marks the comfortable zone where a mortgage doesn't crowd out the rest of your financial life.
Max housing payment = Gross monthly income × 28%A rough starting point is 3–4× gross annual income, but the honest answer depends on rates, your debts, and your down payment — which is exactly what this calculator computes. At higher interest rates the multiple shrinks; with no other debt and a large down payment it stretches.
Your total monthly debt payments divided by gross monthly income. Lenders typically want housing costs under ~28% (front-end DTI) and all debts under ~36–43% (back-end DTI). Lower DTI generally means better approval odds and rates.
No — conventional loans allow as little as 3–5% down and FHA 3.5%, but below 20% you'll usually pay PMI until you reach 20% equity. A smaller down payment gets you in sooner; a larger one lowers the payment, the rate risk, and total interest.
No. Pre-approval is a lender's maximum based on underwriting rules; affordability is what fits your actual budget with room for savings, childcare, travel, and surprises. Plenty of people regret borrowing their full pre-approval amount.
Lenders will approve more than you should borrow. How the 28/36 rule works, what it looks like at real salaries, and the costs first-time buyers forget.