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Home › Home · Updated 2026-10-15

How much house can I afford?

Lenders look at your debt-to-income (DTI) ratio to decide how much you can borrow. This calculator uses the common 28/36 guideline: housing costs up to 28% of gross monthly income, and all debts up to 36%. It solves backward for the highest home price that fits both limits.

  1. Enter your numbersDefaults are realistic examples; replace them with yours.
  2. Read results instantlyEverything updates as you type. Nothing is sent anywhere.
  3. Check the assumptionsSee exactly how we calculate, below.

How we calculate

Max housing = min(income × 28%, income × 36% − debts); solve price where P&I(price − down) + tax + insurance = max housing
  • PMI and HOA dues are not included; they would lower the affordable price.
  • Limits vary: some loan programs allow 43–50% back-end DTI. Adjust the limits to explore.

Understanding your results

The answer is what a lender might approve, not necessarily what is comfortable. Many people aim below the maximum to leave room for savings and repairs.

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Frequently asked questions

What is the 28/36 rule?

A lending guideline: spend no more than 28% of gross monthly income on housing and no more than 36% on all debt payments combined.

Does a bigger down payment help?

Yes. It lowers the loan amount for any price, so the same monthly budget supports a higher price, and 20% avoids PMI.

Why use gross income?

Lenders calculate DTI using pre-tax income, so this calculator does too.