Home Affordability Calculator
Find the most house you can afford under the 28/36 rule from your income, debts and down payment — with property tax, insurance, PMI and HOA in the monthly payment, and every step shown.
Home Affordability Calculator
$313,159 home price
Maximum under the 28/36 rule — the 28% front-end (housing) limit binds. $2,333.33 a month with $31,316 down.
Monthly payment breakdown
| Monthly cost | Comfortable | Stretch |
|---|---|---|
| Home price | $313,159 | $458,982 |
| Down payment | $31,316 | $45,898 |
| Loan amount | $281,843 | $413,084 |
| Principal & interest | $1,781.44 | $2,610.97 |
| Property tax | $260.97 | $382.48 |
| Home insurance | $150.00 | $150.00 |
| PMI | $140.92 | $206.54 |
| HOA dues | $0.00 | $0.00 |
| Total housing payment | $2,333.33 | $3,350.00 |
| Housing ÷ gross income | 28% | 40.2% |
| All debts ÷ gross income | 32.8% | 45% |
Working
- Gross monthly income: $100,000.00 ÷ 12 = $8,333.33.
- Front-end limit (28% for housing): $8,333.33 × 0.28 = $2,333.33 a month.
- Back-end limit (36% for all debts): $8,333.33 × 0.36 = $3,000.00 − $400.00 other debts = $2,600.00 a month for housing.
- The lower of the two is the 28% front-end limit, so your housing budget is $2,333.33 a month.
- Monthly principal and interest per $1 borrowed at 6.5% for 30 years: k = 0.0063206802; PMI adds 0.6% ÷ 12 = 0.0005 per $1 borrowed; property tax adds 1% ÷ 12 = 0.000833333 per $1 of price.
- Each $1 of price costs 0.9 × (0.0063206802 + 0.0005) + 0.000833333 = 0.0069719455 a month; fixed costs (insurance ÷ 12 + HOA) are $150.00.
- Maximum price: ($2,333.33 − $150.00) ÷ 0.0069719455 = $313,159 (rounded down to the dollar).
- Check at $313,159: loan $281,843 (10% down); $1,781.44 P&I + $260.97 tax + $150.00 insurance + $140.92 PMI = $2,333.33 a month — 28% of gross income, 32.8% with other debts.
- Stretch (45% of income for all debts): $8,333.33 × 0.45 − $400.00 = $3,350.00 for housing → up to $458,982.
How to use the home affordability calculator
Enter your household’s gross annual income and the monthly payments on any debts you already have. Add your down payment — as a percentage of the price or as a dollar amount — and a mortgage rate and term. Then fill in the costs that come with the home: the property tax rate for the area you’re looking in, a homeowners insurance estimate, any HOA dues, and a PMI rate (it only applies if you put down less than 20%).
The calculator shows the most you could pay under the 28/36 rule, which of the two limits sets it, and a stretch figure; the table breaks the monthly payment down at both prices. Everything updates as you type and is saved in the page address, so you can bookmark or share a scenario. For more background, read our guide how much house can I afford?
The formula
Both limits are based on gross monthly income (annual income ÷ 12):
front-end budget = gross monthly income × 0.28
back-end budget = gross monthly income × 0.36 − other monthly debts
housing budget = the lower of the two The monthly housing cost rises in a straight line with the price: principal and interest on the loan, property tax on the value, PMI on the loan when you put down under 20%, plus fixed insurance and HOA. So the maximum price can be solved exactly:
price = (housing budget − insurance ÷ 12 − HOA) ÷ monthly cost per $1 of price
cost per $1 = (1 − down %) × (k + PMI rate ÷ 12) + tax rate ÷ 12
k = r(1 + r)^n ÷ ((1 + r)^n − 1) (P&I per $1 borrowed, r = rate ÷ 12) With a dollar down payment the loan is the price minus that amount instead, and the calculator handles the jump in cost where PMI starts. If your budget lands inside that jump, the answer is the price at which your savings are exactly 20% down.
Worked example
The calculator opens with a $100,000 income, $400 a month of other debt, 10% down, a 6.5% 30-year loan, 1% property tax, $1,800 a year of insurance, no HOA and PMI at 0.6% of the loan a year.
- Gross monthly income: $100,000 ÷ 12 = $8,333.33.
- Front-end: $8,333.33 × 0.28 = $2,333.33. Back-end: $8,333.33 × 0.36 − $400 = $2,600.00. The 28% limit is lower, so it binds.
- Cost per $1 of price: 0.9 × (0.0063206802 + 0.0005) + 0.000833333 = 0.0069719455 a month, and insurance adds a fixed $150.
- Maximum price: ($2,333.33 − $150) ÷ 0.0069719455 = $313,159.
- Check: $1,781.44 principal and interest + $260.97 tax + $150.00 insurance + $140.92 PMI = $2,333.33 a month, 28% of gross income and 32.8% including the $400 of debt.
If the other debts were $1,200 a month instead, the back-end limit would fall to $1,800 and bind, cutting the maximum to $236,662. And a dollar down payment can hit the PMI jump: with $70,000 saved, the answer is exactly $350,000 — 20% down, $2,211.46 a month — because any higher price would add PMI and push the payment above $2,333.33.
Comfortable vs stretch
The comfortable figure is the 28/36 result. The stretch figure lets all your debts, including housing, reach 45% of gross income with no separate housing cap — the most Fannie Mae allows on manually underwritten loans for borrowers who meet its credit score and reserve requirements. In the example that is $458,982 and $3,350 a month. Its automated system can approve up to 50%, and FHA loans use their own limits, so a lender may offer more. Remember that the ratios use pre-tax income: measured against take-home pay after taxes and retirement savings, a stretch payment takes a much bigger share than 45%.
What the rule leaves out
- Upfront cash. Closing costs come on top of the down payment, and it’s wise to keep an emergency fund after you buy.
- Upkeep and utilities. Repairs, maintenance and utilities aren’t in the ratios but come out of the same budget.
- Rates and taxes move. A one-point higher rate cuts the example’s maximum from $313,159 to $288,180. Property tax rates vary widely by county, and insurance costs by location.
Once you have a price in mind, the mortgage calculator shows the payment on a specific home, and the amortization calculator shows how extra payments would shorten the loan. If you’re paid by the hour, the salary calculator converts your pay to the annual income this page needs. These results are estimates for planning, not a loan offer or financial advice.
Frequently asked questions
What is the 28/36 rule?
A common lending guideline: your total monthly housing payment should be no more than 28% of your gross (pre-tax) monthly income, and all your monthly debt payments including housing no more than 36%. The CFPB describes 28% as a mortgage-lending rule of thumb, and 36% is Fannie Mae’s standard maximum debt-to-income ratio for manually underwritten loans. Whichever limit gives the lower payment is the one that binds.
How much house can I afford on $75,000 a year?
With $400 a month of other debt, 10% down, a 6.5% 30-year loan, 1% property tax, $1,800 a year insurance and PMI at 0.6% of the loan, the 28% limit allows $1,750 a month for housing, which supports a home of about $229,491. Enter your own numbers above — the rate, taxes and your other debts change the answer a lot.
What counts as monthly debt for the 36% limit?
Required payments on debts such as car loans, student loans, personal loans and the minimum payments on your credit cards, plus obligations like child support or alimony. Everyday bills — utilities, phone, groceries, gas — are not counted by lenders, though they still have to fit in your budget. Enter debts as monthly payments, not balances.
When do I have to pay PMI, and how much is it?
On a conventional loan, private mortgage insurance is usually required when you put down less than 20%. Freddie Mac estimates it at roughly $30 to $70 a month for every $100,000 borrowed (about 0.36%–0.84% a year), depending on your credit score and down payment. You can ask to cancel it once your balance reaches 80% of the home’s original value, and it ends automatically at 78% if you are current on payments. FHA loans charge their own mortgage insurance under different rules.
Will a lender approve more than the 28/36 rule?
Often, yes. Fannie Mae allows total debt up to 45% of income on manually underwritten loans for borrowers who meet its credit score and reserve requirements, and up to 50% through its automated Desktop Underwriter system. FHA’s manual-underwriting benchmarks start at 31% for housing and 43% in total. Being approved for a payment doesn’t mean it is comfortable, which is why this page shows a stretch figure separately.
Sources
- CFPB — What is a debt-to-income ratio?
- CFPB — Buying a house: monthly payment worksheet (28% rule of thumb)
- Fannie Mae Selling Guide B3-6-02 — Debt-to-Income Ratios
- HUD — Single Family Housing Policy Handbook 4000.1 (FHA underwriting)
- Freddie Mac — Breaking down PMI
- CFPB — What is private mortgage insurance?
- CFPB — When can I remove private mortgage insurance (PMI) from my loan?
- CFPB — What is an escrow or impound account?