House Affordability Calculator
Enter your income, monthly debts and down payment to estimate the home price you could afford.
What this tool does
A common guideline says housing should take no more than 28% of gross income and total debts no more than 36%. On a 90,000 income with 500 of other monthly debts, the limit is 2,100 a month for housing. After 400 for tax and insurance, 1,700 goes to the mortgage, which at 6.5% over 30 years supports a loan of about 269,000, or a price near 329,000 with 60,000 down.
Works out the largest monthly housing payment allowed by the 28% and 36% limits and takes the lower one.
Turns the principal and interest part into a loan, and adds your down payment to estimate a price.
How to use it
- Enter gross annual income and other monthly debts.
- Enter your down payment, the mortgage rate and term.
- Enter monthly property tax and insurance.
- Read the price you could afford and which limit applied.
Why use this calculator
Estimates the home price you could afford from your income, debts and down payment using the common 28/36 guidelines, and says which limit applies. Lenders look at your income relative to housing costs and total debts. Knowing both ratios before you start looking helps you set a realistic budget rather than falling in love with a home you cannot finance.
Why we built it
We built the house affordability calculator to apply the 28/36 guideline, say which limit applies and let you change the percentages. Follow it with the down payment calculator and the mortgage calculator.
Related tools worth a look: the Coffee Ratio Calculator and the Net Worth Calculator.
Who this tool is for
- Buyers setting a realistic budget before house hunting
- Couples combining incomes
- Anyone testing the 28/36 guideline
When to use it
- Before you start house hunting.
- Deciding how much to save for a down payment.
- Seeing the effect of paying off other debts.
- Comparing what different rates allow.
How it works
Monthly gross income × 28% is the front-end limit for housing. Monthly gross income × 36% minus your other debt payments is the back-end limit. The lower of the two is the most you can spend on housing. Subtract property tax and insurance to get principal and interest, then divide by the payment factor to get the loan.
Example: 90,000 a year is 7,500 a month. 28% is 2,100. 36% is 2,700, minus 500 of debts is 2,200. The lower, 2,100, applies. Less 400 for tax and insurance leaves 1,700.
This is a guideline. Lenders also consider credit score, savings, employment and other costs, and you may be comfortable with less than the maximum.
A worked example
These are the values the calculator opens with, so you can see exactly what it does with them. Change any value on the page and the result updates; the figures below come from the same calculation.
| Input | Value |
|---|---|
| Currency symbol | $ (dollar) |
| Gross annual household income | 90000 |
| Other monthly debt payments | 500 |
| Cash for the down payment | 60000 |
| Mortgage rate | 7.4 |
| Loan term | 30 |
| Monthly property tax and insurance | 400 |
| Housing share of income | 28 |
| All debts share of income | 36 |
With those inputs, the calculator returns:
- Estimated price you could afford: $305,529.98
- Largest mortgage: $245,529.98
- Most you could spend on housing a month: $2,100.00
- Of which principal and interest: $1,700.00
- Limit that applies: Housing share of income
- Down payment as a share of price: 19.6%
Rates and figures on this page
Figures checked on 16 October 2026. The default mortgage rate of 7.4% reflects the Freddie Mac weekly survey, which showed the US 30-year fixed-rate average at 7.40% on 15 October 2026. The 28% and 36% income guidelines are long-standing rules of thumb, not rules every lender applies; many lenders also look at credit score, savings and the type of loan.
At higher rates the same monthly payment supports a smaller loan. Try a rate 0.5 points higher and lower to see the range.
What you give it, and what you get back
| Item | Details |
|---|---|
| Income and debts | Gross annual income and monthly debt payments. |
| Down payment, rate, term | Cash available and the mortgage terms. |
| Tax and insurance | Estimated monthly property tax and home insurance. |
| Output | Affordable price, loan, maximum housing payment and the limit that applied. |
Issues you may run into
| What you see | Why it happens | What to do |
|---|---|---|
| Result is zero or an error | Debts and costs use up the allowed share of income. | Reduce debts, or raise income or the limits. |
| Result is higher than I feel comfortable with | The guideline is a maximum, not a target. | Lower the limits to match your budget. |
| My lender allows more | Lenders use their own rules. | Use this as a cautious guide. |
Assumptions and limitations
- Fixed-rate loan only.
- Does not include PMI, HOA fees or maintenance.
- Guideline ratios differ by country and loan type.
Frequently asked questions
What is the 28/36 rule?
Housing costs should be no more than 28% of gross income and total debt payments no more than 36%.
How much house can I afford on 90,000 a year?
Under the 28/36 guideline with 500 of monthly debts, about 2,100 a month for housing, which is roughly a 329,000 home with 60,000 down at 6.5%.
Should I buy the most the calculator says?
Not necessarily. It is a maximum guideline; leave room for maintenance and other costs.
Does it include taxes and insurance?
Yes, as the monthly figure you enter.
Why does a bigger down payment help?
It raises the price you can afford for the same monthly payment.
Is my information sent anywhere?
No. The calculation runs in your browser and your figures never leave the page.
Sources and accuracy
Affordability estimates apply the debt-to-income ratios used in United States mortgage underwriting, with housing costs commonly limited to about 28 percent of gross monthly income and total debt payments to about 36 percent. Exact limits are set by each lender and by loan program rules.
Figures last checked against the source on . Standards and rates can change — if you are relying on this for something that matters, confirm against the source above. Think a figure is wrong or out of date? Send a correction.