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Wondering how much house you can afford? This calculator uses the lender 28/36 rule — your housing payment should stay under 28% of gross monthly income, and total debt under 36% — along with your down payment and mortgage rate to estimate a realistic home price.
How to use it
Enter your annual income, existing monthly debts (car, student loans, minimum card payments), your down payment, and the current mortgage rate. The result is an estimated maximum home price and the monthly payment behind it.
The 28/36 rule, explained
Lenders cap your front-end ratio (housing ÷ income) near 28% and your back-end ratio (all debt ÷ income) near 36%. Your affordable payment is the lower of those two limits. We reserve part of it for taxes and insurance, then back out the loan amount and add your down payment.
Related
Home Affordability Calculator FAQ
How much house can I afford on $90,000 a year?
With $90,000 income, modest debts, and ~$40,000 down at 6.5%, the 28/36 rule supports roughly a $300,000–$340,000 home. Your exact number depends on your debts, down payment, and rate — adjust the fields above.
What is the 28/36 rule?
It is a lender guideline: keep your housing payment under 28% of gross monthly income (front-end) and all debt payments under 36% (back-end). Staying inside both ratios keeps your loan affordable and improves approval odds.
How much income do I need to buy a $400,000 house?
At 6.5% with 20% down, a $400,000 home has a payment near $2,500/month including taxes and insurance. Under the 28% rule that needs roughly $107,000–$110,000 in annual income, less if you carry little other debt.
Does my down payment change how much I can afford?
Yes. A larger down payment means a smaller loan for the same price, and 20%+ removes PMI, freeing room in your monthly budget — so you can afford a higher-priced home.
Do student loans affect how much house I can afford?
Yes. Monthly debts like student loans count in the 36% back-end ratio, reducing the payment you can qualify for. Paying down debts before applying can increase your home-buying budget.
Written by Nicolas William, Lead Financial Editor at Finances News. Estimates for planning only. Last updated 2026.