House Affordability Calculator
See how much house you can afford using the 28/36 rule — factoring in income, debts, down payment, mortgage rate, property tax, insurance, and HOA dues.
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How much house you can afford depends less on the sticker price and more on the monthly payment your income can support. US lenders typically screen mortgage applications with the 28/36 rule: housing costs (principal, interest, taxes, insurance — PITI) shouldn't exceed 28% of gross monthly income, and total debt payments — housing plus car loans, student loans, and credit-card minimums — shouldn't exceed 36%. This calculator applies both limits, takes the tighter one, and solves backwards for the home price that fits.
How it's calculated
Front-end cap = income/12 × 0.28
Back-end cap = income/12 × 0.36 − monthly debts
PITI budget = min(front-end, back-end), floored at 0
Payment factor f = r(1+r)^n ÷ ((1+r)^n − 1), r = rate/1200
Solve for the loan L in:
budget = L×f + (L + down) × tax%/1200 + insurance/12 + HOA
L = (budget − down × tax%/1200 − insurance/12 − HOA) ÷ (f + tax%/1200)
Home price = L + down payment
Property tax is modeled as a percentage of the full home value (loan plus down payment), which is why the down payment appears inside the algebra — a bigger house means a bigger tax bill, even on the portion you paid cash for. The US average effective property tax rate is roughly 1.1% of home value per year, but it ranges from about 0.3% in Hawaii to over 2% in New Jersey and Illinois.
Assumptions and limitations: the 28/36 rule is a conservative guideline, not a hard limit — conventional loans routinely close at back-end DTIs up to 45%, and FHA loans can go higher, so a lender may approve you for more than this tool shows. Private mortgage insurance (PMI), typically required when the down payment is below 20% of the price, is not modeled and would reduce your affordable price somewhat. Closing costs (commonly 2–5% of the loan) and ongoing maintenance are also excluded. Treat the result as a sustainable budget, then get a formal pre-approval before house hunting.
Frequently asked questions
What is the 28/36 rule?
A lending guideline: spend no more than 28% of gross monthly income on housing (PITI), and no more than 36% on all debt payments combined (housing plus car loans, student loans, and card minimums). This calculator uses whichever limit is tighter for you.
How much house can I afford on $90,000 a year?
With $400/month in other debts, $40,000 down, a 6.5% 30-year mortgage, 1.1% property tax, and $1,800/year insurance, the 28/36 rule supports about a $2,100 monthly PITI payment — roughly a $304,000 home with a $264,000 loan. Adjust the sliders to match your situation.
Does this calculator include PMI?
No. Private mortgage insurance is typically required when you put down less than 20% and usually costs 0.3%–1.5% of the loan per year. If your down payment is under 20%, expect your true affordable price to be somewhat lower than shown.
Can a lender approve me for more than the 28/36 rule allows?
Often, yes. Conventional underwriting commonly allows back-end DTIs up to about 45%, and FHA loans can stretch further with compensating factors. But the 28/36 rule is a better guide to what is comfortably sustainable, especially once maintenance and utilities are added.
Why does my down payment raise the affordable price by slightly less than its dollar amount?
Your monthly budget (the 28%/36% limit) depends only on income and debts, so the down payment does not change it. Every down-payment dollar still adds directly to the price, but property tax on that extra home value eats a small slice of the fixed PITI budget. The net effect is about $0.87 of price per $1 down at the default 6.5% rate and 1.1% property tax, and exactly $1 only when property tax is 0%.
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Results from this calculator are estimates for informational use only — not financial, medical, or professional advice. Read our full disclaimer before acting on any number you see here.