How Much House Can I Afford?
How to Use This Affordability Calculator
Enter your annual gross income, monthly debt payments, down payment, interest rate, and loan term. The calculator uses the standard 28/36 lending rule to calculate the maximum home price you can comfortably afford.
Tap CALCULATE to see your maximum home price, maximum loan amount, estimated monthly payment, and your debt-to-income (DTI) ratio.
What is a Home Affordability Calculator?
A home affordability calculator estimates how much house you can buy based on your income and existing debts. Lenders use two key ratios to determine how much they'll lend you: the front-end ratio (housing costs vs. income) and the back-end ratio (total debts vs. income).
Most conventional lenders follow the 28/36 rule: your monthly housing payment should not exceed 28% of your gross monthly income, and your total monthly debts (including the mortgage) should not exceed 36%.
Understanding Your Debt-to-Income Ratio (DTI)
Your DTI ratio is the percentage of your gross monthly income that goes toward debt payments. A DTI below 36% is considered healthy by most lenders. Between 36–43% is acceptable for many loan programs. Above 43% may make it difficult to qualify for a conventional mortgage.
To improve your affordability, you can pay down existing debts, increase your down payment, or look for a lower interest rate through comparison shopping or improving your credit score.