How Much House Can I Afford?

Find your comfortable price range using the 28/36 bank rule.

Annual Gross Income ($)

Total income before taxes.

Monthly Debts ($)

Credit cards, car loans, student loans.

Down Payment ($)

Interest Rate (%)

Term (Years)

Advanced Settings (Taxes & HOA)

Yearly Property Tax ($)

Yearly Home Insurance ($)

Monthly HOA Fees ($)

Enter your financial details to see what you can afford.

Maximum Home Price

$0

Based on a 36% Debt-to-Income ratio

Monthly Payment $0

Includes Principal, Interest, Taxes & Insurance

Housing Ratio (Front-End) 28%

Ideally under 28% of gross income

Total Debt Ratio (Back-End) 36%

Ideally under 36% of gross income (including housing)

Principal & Interest $0

Property Tax $0

Home Insurance $0

HOA Fees $0

Before you start house hunting, it's crucial to know your budget. Lenders typically use the 28/36 rule to determine how much they will lend you.

Front-End Ratio (28%): Your monthly housing costs (mortgage, tax, insurance) should not exceed 28% of your gross monthly income.
Back-End Ratio (36%): Your total monthly debt payments (housing + credit cards + car loans) should not exceed 36% of your gross monthly income.

If the calculator shows a lower number than you hoped, try these steps:

Pay off debt: Reducing monthly car or card payments increases your borrowing power significantly.
Increase down payment: A larger down payment reduces the loan amount and eliminates PMI (Private Mortgage Insurance).
Check interest rates: Improving your credit score can qualify you for lower rates, increasing your purchasing power.

Does this include closing costs?

No, this calculator estimates the purchase price. Closing costs are typically 2-5% of the home price and are paid upfront.

What if my DTI is higher than 36%?

Some lenders (like FHA loans) allow DTIs up to 43% or even 50%, but you may pay a higher interest rate.