Home Affordability Calculator

Find out how much home you can afford using the 28/36 rule. Based on income, debts, down payment, and current rates.

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Maximum Home Price You Can Afford

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Max Monthly Payment$0
Loan Amount$0
DTI Ratio0%

📐 Formula

Max Housing Payment = Gross Monthly Income × 28%. Max Total Debt = Gross Monthly Income × 36%. Loan = MaxPayment / Monthly Rate Factor

Frequently Asked Questions

The 28% rule limits housing costs (mortgage, tax, insurance) to 28% of gross monthly income. The 36% rule limits total debt payments (housing + car + student loans) to 36%. Lenders use these as qualifying guidelines.

Conventional loans typically require 5–20% down. FHA loans allow as little as 3.5% with a 580+ credit score. Putting 20% down avoids Private Mortgage Insurance (PMI), which adds 0.5–1.5% annually.

For conventional loans: 620 minimum, 740+ for best rates. FHA loans: 580 for 3.5% down. VA loans: no minimum (but lenders typically want 620+). A higher credit score saves tens of thousands over a 30-year mortgage.