How Much House Can I Afford?
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Formula: Max Payment = min(28% of gross income, 36% of gross income − debts)
Mortgage Affordability Calculator
Knowing how much home you can afford prevents overextending financially. The 28/36 rule is the standard guideline used by lenders.
Conversion Formula
Max Payment = min(28% of gross income, 36% of gross income − debts)
The calculator applies the 28/36 rule, then reverse-engineers the maximum loan amount from the affordable payment.
Step-by-Step Examples
$85,000 income, $500 debts, $50,000 down = Max home: ~$310,000
28% of $7,083/mo = $1,983 max payment
Frequently Asked Questions
What is the 28/36 rule?
Spend no more than 28% of gross monthly income on housing costs, and no more than 36% on all debt combined.
Does this include taxes and insurance?
The 28% guideline includes PITI (principal, interest, taxes, insurance). This calculator estimates P&I only.
Should I buy the maximum I can afford?
Not necessarily. Leaving a margin provides a financial cushion for repairs, emergencies, and lifestyle expenses.