How Much House Can I Afford?
Before you fall for a listing, find a price you can actually carry. This works backward from your income, debts and down payment using the 28/36 debt-to-income rule lenders really use — and tells you which limit is holding you back.
Open the affordability calculator →Free and instant. Adjust the ratios, rate and costs to see your maximum price.
How lenders decide what you can afford
Affordability comes down to two debt-to-income (DTI) ratios. Whichever is lower sets your ceiling:
- Front-end (28%) — your total housing payment (principal, interest, taxes, insurance, PMI, HOA) shouldn't exceed 28% of gross monthly income.
- Back-end (36%) — all your debt payments, housing plus car, student and credit-card minimums, shouldn't exceed 36%.
The calculator solves for the highest home price whose full monthly payment fits under both limits, accounting for taxes, insurance and PMI on the way — and tells you whether it's your income or your existing debt that's the real constraint.
| Gross annual income | $120,000 |
| Monthly debts | $500 |
| Down payment | $80,000 |
| Max monthly payment (28% front-end) | $2,800 |
| Maximum home price | ~$421,000 |
Here the front-end ratio is the binding limit — a healthy sign. If your monthly debts were higher, the 36% back-end ratio would cap you instead, and paying that debt down would raise your price.
Common questions
How much house can I afford on my income?
Under the 28/36 rule, $120,000 a year with $500 monthly debt and $80,000 down supports roughly a $420,000 home. Your rate, taxes, insurance and PMI shift the exact figure.
What is the 28/36 rule?
Housing ≤ 28% of gross monthly income (front-end) and total debt ≤ 36% (back-end). The lower limit sets your maximum payment.
Does other debt affect it?
Yes — monthly debts count against the 36% limit, lowering the mortgage you qualify for. Paying them down can raise your maximum price.