Find out how much house you can afford based on your income, debts, down payment, and interest rate using the 28/36 qualifying rule.
Input your gross monthly income, monthly debts (car payment, student loans, etc.), down payment, and interest rate.
Optionally enter property tax rate, insurance, and HOA to get a more accurate affordability estimate.
Find the maximum home price you can afford under the 28% and 36% qualifying rules used by most lenders.
The 28/36 rule is the standard lender guideline: your mortgage payment (PITI) should not exceed 28% of gross monthly income, and your total debt payments (mortgage + car + student loans + etc.) should not exceed 36% of gross income. Most conventional lenders use this to qualify borrowers.
Monthly debts include: car loans, student loans, credit card minimum payments, personal loans, and any other recurring debt obligations. Do not include utilities, groceries, or other living expenses — only fixed loan/credit payments.
A higher credit score qualifies you for a lower interest rate, which directly increases how much home you can afford. The difference between a 620 and 760 credit score can be 0.5% to 1.5% in rate, which on a $400K home changes your affordable price by $30,000 to $60,000.
DTI is your total monthly debt payments divided by your gross monthly income, expressed as a percentage. Most conventional lenders require a DTI of 43% or below. FHA loans allow up to 50% DTI. Lower DTI means more affordable home price.
Being pre-approved for a maximum amount does not mean you should spend it. Many financial advisors recommend keeping housing costs at 25% or below gross income (more conservative than the 28% rule) to leave room for saving, investing, and unexpected costs.
This calculator focuses on monthly affordability. Closing costs (typically 2-5% of the purchase price) are a separate upfront cost you will need to have saved in addition to your down payment.
Ideally: down payment (3-20% of purchase price), closing costs (2-5%), and 3-6 months emergency fund after closing. So for a $400K home with 10% down, budget $40K down + $10K closing + $10K emergency = approximately $60K total.
Enter your gross monthly income (before taxes and deductions). Lenders use gross income for qualifying ratios, not take-home pay. For self-employed borrowers, lenders typically use 2-year average from tax returns.
