Home Affordability Calculator
Enter your income, debts, and down payment to see exactly how much house you can afford. Get a full monthly payment breakdown and debt-to-income analysis with AI insights.
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Send Money NowThe 28/36 Rule Explained
Lenders use the 28/36 rule to assess mortgage affordability. The front-end ratio limits your housing costs (principal, interest, taxes, insurance) to 28% of your gross monthly income. The back-end ratio limits all debt payments (housing + car loans + student loans + credit cards) to 36% of gross income. Staying within these guidelines gives you financial flexibility for savings and unexpected expenses.
What Affects How Much House You Can Afford?
Your maximum home price depends on five key factors: annual income, existing monthly debts, down payment amount, current mortgage interest rate, and local property taxes. A higher income or larger down payment increases affordability. Higher existing debts or a higher interest rate reduces it. Even a 1% change in mortgage rate can shift your affordable home price by 10% or more.
Down Payment: Why 20% Matters
A 20% down payment eliminates private mortgage insurance (PMI), which typically costs 0.5–1.5% of the loan annually. On a $400,000 loan, that's $2,000–$6,000 per year added to your housing costs. You can buy with as little as 3–5% down (FHA or conventional loans), but the PMI adds significantly to your monthly payment and reduces your buying power.