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Home Affordability Calculator

Find out how much house you can afford based on income, debts, down payment, and interest rate. Uses the 28/36 rule with full payment breakdown.

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Home Affordability Calculator

How much house can you afford? Enter your income, debts, and down payment to find your maximum home price using the 28/36 rule.

đŸ’ĩYour Financial Details

🏡Maximum Home Price

You can afford up to
$241,000
With $40,000 down â€ĸ 30-year loan â€ĸ 7.0% rate
⚠ī¸28% Housing Rule
28.1% of gross income
Max housing: $1,867/mo
✅36% Total Debt Rule
35.6% of gross income
Max total debt: $2,400/mo
Down payment: 16.6%⚠ī¸ PMI required (less than 20% down)

📋Monthly Payment Breakdown

Principal & Interest$1,337.26/mo
Property Tax$241.00/mo
Home Insurance$125.00/mo
PMI$167.50/mo
Total Monthly Payment$1,870.76
Total with other debts: $2,370.76/month
Loan amount: $201,000
Total interest paid: $280,413

📈How Income Affects Affordability

-$10k income$209,000
Current$241,000
+$10k income$268,000

ℹī¸Understanding the 28/36 Rule

The 28% Rule (Housing Costs)

Your total monthly housing payment (mortgage P&I + taxes + insurance + HOA + PMI) should not exceed 28% of your gross monthly income. This ensures housing stays affordable relative to your income.

The 36% Rule (Total Debt)

Your total monthly debt payments (housing + car loans + student loans + credit cards) should not exceed 36% of gross monthly income. Some lenders allow up to 43–45% (FHA/VA loans).

What is PMI?

Private Mortgage Insurance is required when your down payment is less than 20%. It typically costs ~1% of the loan per year and can be removed once you reach 20% equity.

Disclaimer: This is an estimate for planning purposes only. Actual loan approval depends on credit score, lender requirements, and other factors. Consult a mortgage professional for personalized advice.

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