How Much House Can I Afford?
Based on the 28/36 rule — the guideline lenders use.
Car loans, student loans, credit card minimums, etc.
You can afford a home up to
$316,869
The 28/36 Rule Breakdown
💡 Plain English: With $75,000/year income and $40,000 down, you could afford a home around $316,869. Your monthly payment (P&I) would be about $1,750.00/mo.
About the How Much House Can I Afford?
Affordability is not just about what a lender will approve you for — it is about what comfortably fits your budget. This calculator uses the 28/36 rule, a long-standing guideline lenders use to check that your housing costs and total debts stay at a healthy percentage of your income.
How this calculator works
Enter your gross annual income, monthly debts, down payment, interest rate, and loan term. The calculator estimates the maximum home price where your monthly housing payment stays under 28% of your gross monthly income, and your total monthly debts stay under 36%.
The math, in plain English
Front-end ratio = monthly housing payment ÷ gross monthly income (target ≤ 28%). Back-end ratio = total monthly debts ÷ gross monthly income (target ≤ 36%). The calculator solves for the loan amount that keeps both ratios within those limits.
Key terms
- •Gross income — your income before taxes
- •28/36 rule — spend no more than 28% of gross income on housing and 36% on all debt combined
- •Debt-to-income (DTI) ratio — all monthly debt payments divided by gross monthly income
Tips & things to know
- ✓Just because you qualify for a number does not mean you should spend it — leave room for maintenance, utilities, and savings.
- ✓Paying down existing debt before buying improves your back-end ratio and boosts what you can afford.
- ✓A larger down payment increases your affordable price because you are borrowing less.
Frequently asked questions
Is the 28/36 rule a hard requirement?+
It is a guideline, not a law. Many lenders allow higher ratios, but staying within 28/36 gives you a comfortable, lower-risk payment.
What counts as a monthly debt?+
Minimum credit-card payments, auto loans, student loans, child support, and any other recurring debt payments — but not everyday living expenses like groceries or utilities.
This calculator is for educational purposes only and uses estimates. Always consult a licensed mortgage professional for advice specific to your situation.