🏡 Home Affordability Calculator
Find the home price range you can realistically afford.
How This Is Calculated
This uses the standard 28/36 rule: your maximum monthly housing payment is 28% of gross monthly income, capped further if your total debts (housing + other debts) would exceed 36%. That housing budget, minus taxes/insurance, becomes your maximum loan payment — which is converted into a loan amount at your rate and term, then your down payment is added to estimate the home price you can afford.
Frequently Asked Questions
What is the 28/36 rule?
Housing costs shouldn't exceed 28% of gross monthly income, and total debt payments shouldn't exceed 36%.
Different loan types (FHA, VA, conventional) use different thresholds, so this is a general estimate.
Does this include property taxes and insurance?
Yes — lenders evaluate your total housing payment (principal, interest, taxes, and insurance), not just
the loan payment alone.
Guide: understanding your result
- A common lender guideline is the 28/36 rule: housing costs up to about 28% of gross monthly income and total debt payments up to about 36%.
- Rates move affordability a lot: each 1 percentage point higher rate lowers the loan the same payment supports by roughly 10%.
- Lenders also look at credit score, savings and job history — this is an estimate, not a pre-approval.
Worked example
With a household income of $100,000, 28% of gross monthly income is $2,333. If about 22% of that goes to property tax and insurance, the rest supports a 30-year loan of roughly $280,318 at 6.76%.
Approximate home price by income (28% guideline, 20% down)
| Annual income | Max housing payment (28%) | Supported loan | Price with 20% down |
|---|---|---|---|
| $60,000 | $1,400 | $168,191 | $210,238 |
| $80,000 | $1,867 | $224,254 | $280,318 |
| $100,000 | $2,333 | $280,318 | $350,397 |
| $125,000 | $2,917 | $350,397 | $437,997 |
| $150,000 | $3,500 | $420,477 | $525,596 |
| $200,000 | $4,667 | $560,636 | $700,795 |
Assumes no other debts, a 30-year fixed loan at 6.76% and about 22% of the housing payment going to taxes and insurance.
Common mistakes to avoid
- Budgeting to the maximum a lender approves rather than what fits your other goals.
- Forgetting maintenance, HOA dues and closing costs.
Official sources
Examples are calculated live from the same data the calculator uses and are for education only — they are not financial, tax or investment advice.
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