Find out how much house you can afford based on your income, debts, and down payment. Based on the 28/36 DTI rule used by mortgage lenders.
Your Finances
Include car loans, student loans, credit card minimums
Affordability Estimate
Maximum Home Price
$392,243
28% front-end DTI · 6.5% APR · 30yr
💬 In Plain English
Based on your income and debts, a lender would likely approve you for a home up to about $392,243 — that's the absolute ceiling, stretching your budget to the limit. Just because you can borrow that much doesn't mean you should: a more comfortable number, leaving room to breathe, is closer to $309,182.
Estimates P&I only. Your actual payment will include property taxes, homeowner's insurance, and possibly PMI. Approval and final rate depend on credit score, lender policies, and market conditions. Consult a licensed mortgage professional.
👋 Simple Explanation
Lenders don't just look at your income — they look at how much of it is already spoken for by other debts, then cap your mortgage payment so your total bills don't eat too much of your paycheck. This calculator runs that same math (the "28/36 rule" banks use) to estimate your range.
This calculator uses the lender guidelines known as the 28/36 rule. Your maximum housing payment (principal + interest) cannot exceed 28% of your gross monthly income (front-end DTI). Your total monthly debt payments — including the new mortgage — cannot exceed 36% (back-end DTI). Your result is the lower of the two limits.
To find the maximum loan amount from a given monthly payment, we use the inverse of the standard amortization formula:
Loan = Payment × [1 – (1+r)^–n] / r
Where r = monthly rate (APR ÷ 12) and n = total months. Add your down payment to the loan amount to get the maximum home price.
Increase your down payment. A larger down payment reduces the loan amount, potentially eliminates PMI (if you reach 20%), and lowers your monthly payment. Even an extra $10,000 down can add $30,000–$50,000 to your affordable home price.
Pay down existing debts first. Reducing your monthly debt obligations directly increases the amount available for a mortgage. Paying off a $350/month car loan can add $50,000–$70,000 to your affordable home price at current rates.
Improve your credit score. A score jump from 680 to 740 can reduce your mortgage rate by 0.25%–0.75%. At a $400,000 loan, a 0.5% rate reduction saves over $60,000 in interest over 30 years — and qualifies you for a larger loan.
Consider a 15-year mortgage. While the payment is higher, 15-year rates are typically 0.5%–0.75% lower than 30-year rates, which can meaningfully increase your purchasing power if you can manage the higher monthly payment.
Jump straight to a breakdown for a specific salary — maximum home price, monthly payment, and how down payment changes the number.