Home affordability calculator: how much house can I afford?

Type your income, your debts and your down payment. The page uses the 28/36 rule to find the highest price you can afford. It shows the loan and the payment.

Income in a year, before tax, in dollars

Debt payments in a month, in dollars

Car, student loan and credit card payments.

Down payment, in dollars

Interest rate in a year, in percent

Loan term

Property tax in a year, in percent of the price

Home insurance in a year, in dollars

HOA dues in a month, in dollars

PMI rate in a year, in percent of the loan

PMI applies when the down payment is under 20%.

The highest home price

$327,292

The 28/36 rule
Loan	$287,292
Housing payment in a month	$2,333.33
Most you can pay for housing in a month	$2,333.33
Price by the 28% limit on housing	$327,292
Price by the 36% limit on housing and debts	$349,307
Stretch price (31% and 43%, FHA ratios)	$360,315

The price is set by the 28% limit on housing.

The 28/36 rule is a common lender rule. It is not a law. Your housing payment includes principal, interest, property tax, insurance, PMI and HOA dues. The stretch price uses 31% and 43%, the ratios FHA uses. It is for information. A payment that high leaves less money for other costs.

This is an estimate. It is not an offer of credit. Your lender can give other numbers.

How to use the calculator

Type your income before tax and your debt payments in a month.
Type your down payment, the rate and the loan term.
Type the property tax, the insurance, the HOA dues and the PMI rate.
Read the highest price, and which limit sets it.

Questions

How much house can I afford on $100,000 a year?

With $500 of debt payments a month, $40,000 down, a rate of 6.5% and 30 years, the highest price is $327,292. The whole housing payment is $2,333.33 a month, with property tax, insurance and PMI.

What is the 28/36 rule?

It is a rule of thumb that many lenders use. Your housing payment should be at most 28% of your gross monthly income. Your housing payment and your other debt payments together should be at most 36%. It is not a law. Each lender sets its own limits.

How do my debts change the price?

Debts lower the 36% limit. With $1,500 of debt payments a month instead of $500, the highest price in the example falls from $327,292 to $217,219.

What is the stretch figure?

FHA loans can go up to 31% for housing and 43% in all. With those ratios the example gives $360,315. A payment that high leaves less money for other costs.