See how much house you can afford based on the 28/36 rule
Our Home Affordability Calculator uses the standard 28/36 rule to determine how much house you can afford based on your annual income, monthly debts, down payment, and current interest rates. The 28% front-end ratio limits your housing expenses (PITI + HOA) to no more than 28% of your gross monthly income. The 36% back-end ratio limits all monthly debt payments, including housing, to no more than 36% of your income.
Understanding your home affordability range is the first step in the home-buying process. This calculator factors in property taxes, homeowners insurance, and HOA fees to give you a realistic picture of the total monthly payment you can expect. Your DTI (debt-to-income) ratio is one of the most important factors lenders evaluate when approving a mortgage.
The 28/36 rule is a guideline used by lenders to determine how much debt a borrower can carry. It states that no more than 28% of your gross monthly income should go toward housing expenses, and no more than 36% should go toward total debt including housing.
This calculator provides an estimate based on common lending guidelines. Your actual approval amount depends on your credit score, employment history, exact interest rate, and the specific lender's underwriting criteria. It is always best to get pre-approved by a lender for a more accurate figure.