How Much House Can You Afford?
Learn to calculate your home buying budget using the 28/36 rule and other key factors.
Affordability Calculator
Calculate how much home you can afford based on your income and debts
Your Information
Credit cards, car loans, student loans, etc.
Your Results
Debt-to-Income Ratios
Understanding the 28/36 Rule
The 28/36 rule is a fundamental guideline used by lenders to determine how much house you can afford. It's based on two key percentages of your gross monthly income:
Housing Ratio
Front-End DTI
Your monthly housing costs (mortgage payment, property taxes, insurance, HOA fees) should not exceed 28% of your gross monthly income.
Debt Ratio
Back-End DTI
Your total monthly debt payments (housing + credit cards + car loans + student loans) should not exceed 36% of your gross monthly income.
Factors That Affect Affordability
Income & Employment
Lenders verify your gross income from all sources, including salary, bonuses, and side income. Stable employment history (typically 2+ years) strengthens your application.
Credit Score
Your credit score directly impacts your interest rate and monthly payment. A higher score can save you tens of thousands over the life of the loan.
Down Payment
A larger down payment reduces your loan amount, monthly payment, and potentially eliminates PMI. It also makes your offer more attractive to sellers.
Important Considerations
- Just because you can afford a certain amount doesn't mean you should spend that much
- Leave room in your budget for maintenance, repairs, utilities, and emergencies
- Consider future life changes (kids, career changes, retirement savings)
- Account for property taxes, HOA fees, and homeowners insurance in your budget
Ready to Find Your Perfect Home?
Get pre-approved to know your exact budget and start house hunting with confidence.