Mortgage Affordability Calculator
Before you fall in love with a house, find out what you can actually afford, because lenders will often approve you for more than is prudent, and buying at the top of your approval range can leave you house-poor and unable to save. This calculator uses the 28/36 rule — a longstanding guideline that you should spend no more than 28% of your gross monthly income on total housing costs (principal, interest, taxes, insurance, and HOA) and no more than 36% on all debt combined (housing plus car loans, student loans, credit cards) — to estimate a comfortable home price range. Enter your annual income, your monthly debt payments, your down payment, the interest rate, and the property tax and insurance rates, and the calculator returns the maximum home price you can afford, the maximum monthly housing payment, and the loan amount. The 28/36 rule protects you from overextending: it ensures your housing costs leave room for your other debts, savings, and living expenses, which is why it's stood the test of time even as lenders have offered looser standards. A larger down payment increases what you can afford and may let you avoid private mortgage insurance, while a lower interest rate increases your buying power significantly, which is why getting the best rate matters so much. Remember that the calculator shows what you can afford, not what you should spend — leaving yourself a buffer for maintenance, emergencies, and life changes is wise, so consider buying below your maximum. Use this calculator before you start house hunting to set a realistic price range, to see how a larger down payment or lower rate changes your buying power, and to avoid the trap of being approved for more than you can comfortably carry.
Mortgage Affordability Calculator
Find out how much home you can afford using the 28/36 rule.
Affordable home price
$372,243
Including down payment
Max monthly payment
$2,100
Max housing (28% rule)
$2,100
The 28/36 rule caps housing costs at 28% of gross monthly income and total debt at 36%. This estimate excludes property taxes, insurance, and HOA — factor those in for a complete picture.
About This Calculator
Before you fall in love with a house, find out what you can actually afford, because lenders will often approve you for more than is prudent, and buying at the top of your approval range can leave you house-poor and unable to save. This calculator uses the 28/36 rule — a longstanding guideline that you should spend no more than 28% of your gross monthly income on total housing costs (principal, interest, taxes, insurance, and HOA) and no more than 36% on all debt combined (housing plus car loans, student loans, credit cards) — to estimate a comfortable home price range. Enter your annual income, your monthly debt payments, your down payment, the interest rate, and the property tax and insurance rates, and the calculator returns the maximum home price you can afford, the maximum monthly housing payment, and the loan amount. The 28/36 rule protects you from overextending: it ensures your housing costs leave room for your other debts, savings, and living expenses, which is why it's stood the test of time even as lenders have offered looser standards. A larger down payment increases what you can afford and may let you avoid private mortgage insurance, while a lower interest rate increases your buying power significantly, which is why getting the best rate matters so much. Remember that the calculator shows what you can afford, not what you should spend — leaving yourself a buffer for maintenance, emergencies, and life changes is wise, so consider buying below your maximum. Use this calculator before you start house hunting to set a realistic price range, to see how a larger down payment or lower rate changes your buying power, and to avoid the trap of being approved for more than you can comfortably carry.
Disclaimer: This calculator provides estimates for educational purposes only and does not constitute financial, tax, or investment advice. Results depend on assumptions that may not reflect your actual situation.
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Written by
James MitchellSenior Financial Analyst & Personal Finance Expert
Certified Financial Planner (CFP) • MBA in Finance, University of Chicago Booth School of Business