Home Affordability Calculator
Estimate the home price you can afford based on your income, debts, and down payment, using the conservative 28/36 debt-to-income rule of thumb (adjustable to your lender’s limits). Calculates privately in your browser.
Home you can afford
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Show the math
Your housing budget is the lower of the two debt-to-income caps:
budget = min(income × front%, income × back% − debts) ÷ 12
The defaults use the 28/36 rule of thumb: housing costs up to 28% of gross income (the front-end ratio) and all debt up to 36% (the back-end ratio). It is a conservative guide, not a lender rule: Fannie Mae’s Selling Guide (B3-6-02) caps total debt-to-income at 36% on manually underwritten loans, up to 45% with strong credit and reserves, and 50% through its Desktop Underwriter system. The tool takes the lower limit, removes taxes and insurance, and works back from the remaining payment to the loan and price you can support.
What this does
A home affordability calculator estimates the price you can responsibly afford from your income, monthly debts, and down payment. It applies debt-to-income (DTI) limits, 28/36 by default, to work back to a sustainable loan and purchase price.
How to use it
- Enter your gross annual income and your monthly debt payments.
- Enter your down payment, interest rate, loan term, and property tax plus insurance as a % of price.
- Adjust the housing and total-debt DTI limits if your lender differs.
- Read the home price and loan you can support.
How it works
The tool caps your housing payment at a share of gross monthly income (28% by default) and all monthly debt at a larger share (36% by default), takes the lower limit, sets aside property tax and insurance, and converts the remaining payment back into a loan amount and price. 28/36 is a conservative rule of thumb, not a lender rule: Fannie Mae’s Selling Guide (B3-6-02) caps total DTI at 36% for manually underwritten loans, up to 45% with strong credit and reserves, and 50% for loans run through its Desktop Underwriter system.
Understanding your result
The result is deliberately conservative, because the 28/36 rule keeps payments sustainable. Lenders often allow a higher DTI, but borrowing the maximum leaves little room for the unexpected.
Example
On $84,000 a year ($7,000 a month) with $500 of other monthly debt, the 28/36 rule allows $1,960 a month for housing, which supports a loan of about $310,000 at 6.5% over 30 years before taxes and insurance (tax + insurance set to 0%). Setting tax + insurance to 1.5% of the price lowers it to a home of about $259,000.
Sources & methodology
- Consumer Financial Protection Bureau, Owning a Home, Loan options and the homebuying process
- Consumer Financial Protection Bureau, Debt-to-Income Ratio, How lenders assess affordability
Last updated .
Frequently asked questions
How is affordability calculated?
The tool caps your housing payment at a share of gross income (28% by default) and your total monthly debt at a larger share (36% by default). It takes the lower limit, subtracts taxes and insurance, and works back to the loan and price you can support.
What is the 28/36 rule?
It is a common, conservative rule of thumb, not a lender rule: keep housing costs to 28% of gross monthly income (the front-end ratio) and all debt payments to 36% (the back-end ratio). Lenders set their own limits. Fannie Mae’s Selling Guide (B3-6-02) allows a total debt-to-income ratio of up to 36% on manually underwritten loans, up to 45% when credit-score and reserve requirements are met, and up to 50% for loans underwritten through Desktop Underwriter. Adjust both limits to match your lender.
Why does the result feel conservative?
The 28/36 defaults are deliberately cautious to keep payments sustainable. Lenders may approve a higher DTI, but borrowing the maximum leaves little room for the unexpected.
Is my income data stored?
No. Everything is calculated locally in your browser.
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