Home Affordability Calculator
Find out how much house you can afford based on income and debts.
Results update as you type.
This calculator is for illustrative purposes only. Actual rates, fees and terms vary by lender. Consult a qualified financial adviser before making borrowing decisions.
How it works
A home affordability calculator estimates how much house you can buy by applying two ratios that mortgage lenders use to judge whether a borrower can sustain a mortgage alongside existing financial obligations. The front-end ratio limits your total housing payment — principal, interest, property taxes, and homeowner's insurance (PITI) — to 28% of your gross monthly income. The back-end ratio limits all monthly debt payments (housing plus car loans, student loans, credit cards) to 36% of gross income. Conventional mortgages typically enforce these thresholds, though FHA loans allow up to 31/43 and VA loans use a 41% back-end guideline. This home affordability calculator applies both ratios and uses the more restrictive limit to determine your maximum allowable monthly payment for the mortgage portion. It then works backward through the amortization formula to find the loan amount that produces that payment at your stated rate and term, adds your down payment to get the maximum purchase price, and estimates the resulting monthly PITI. Your actual qualification may differ based on credit score, loan type, lender overlays, and discretionary expenses lenders review during underwriting. A mortgage pre-approval from a lender is the only definitive statement of what you qualify for.
Max PITI = gross income × 28% / 12; Max total debt = gross income × 36% / 12 − existing debts
The 28% front-end rule caps monthly PITI at gross monthly income × 0.28. The 36% back-end rule caps total debt (housing + other debts) at gross income × 0.36, so housing can claim at most income × 0.36 minus existing debts. The binding constraint is whichever limit is lower. The corresponding loan amount is solved from the payment formula: P = payment × ((1+r)^n − 1) / (r × (1+r)^n), then down payment is added for the maximum purchase price.
Source:Consumer Financial Protection Bureau (CFPB)
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter annual gross income, monthly debt payments, down payment and interest rate.
- 2
Adjust the options
Adjust annual property tax rate and loan term if they apply — sensible defaults are already set.
- 3
Read your result
Max home price updates instantly as you type — no button to press.
Frequently asked questions
How much house can I afford on my salary?
The standard guideline is that total housing costs — mortgage, taxes, and insurance — should not exceed 28% of gross monthly income, and all debt payments combined should not exceed 36%. On a $70,000 salary ($5,833/month gross), that limits housing to about $1,633/month. At today's rates, that supports a mortgage of roughly $260,000 plus whatever down payment you have. Your true limit also depends on credit score, existing debts, local property taxes, and the size of your down payment, which affect both qualification and monthly cost.
What is the 28/36 rule?
The 28/36 rule is the standard debt-to-income guideline used by conventional mortgage lenders. The 28 refers to the front-end ratio: your housing costs (principal, interest, taxes, and insurance) should be no more than 28% of gross monthly income. The 36 is the back-end ratio: all monthly debt obligations — housing plus car payments, student loans, credit cards, and other installment debt — should stay under 36%. Lenders use these thresholds to ensure borrowers can sustain the mortgage without undue financial strain.
How much should I put down on a house?
Twenty percent is the traditional benchmark because it eliminates private mortgage insurance, lowers the monthly payment, and reduces total interest. But many buyers put down less: conventional loans start at 3%, FHA at 3.5%, and VA/USDA loans can be zero-down. A smaller down payment gets you into a home sooner but adds PMI (typically 0.5–1.5% of the loan annually) until equity reaches 20%, and it increases the loan amount and monthly payment.
What is included in a PITI mortgage payment?
PITI stands for Principal (the loan payoff portion), Interest (the lender's charge), Taxes (monthly escrow contribution for property taxes), and Insurance (homeowner's insurance, plus PMI if applicable). Lenders almost always require taxes and insurance to be escrowed — collected monthly and paid on your behalf — so PITI is the true all-in housing obligation. The principal and interest portion is fixed on a fixed-rate loan; taxes and insurance can rise over time as home values and insurance costs increase.
What credit score do I need to buy a house?
Conventional loans generally require a minimum credit score of 620, though lenders charge a higher rate for scores below 740 or so. FHA loans allow scores as low as 580 with 3.5% down, or 500–579 with 10% down. VA loans have no official minimum but most VA lenders look for 620. The higher your score, the better the rate. On a $300,000 mortgage, a difference of 100 points on your score can mean 0.5–1% higher rate, adding $90–$180 to your monthly payment and tens of thousands in total interest.