🏠 Home Affordability Calculator

Enter your gross monthly income, other monthly debts and down payment to estimate the maximum home price you can afford, using the common 28/36 debt-to-income guideline lenders use.

Gross Monthly Income

Other Monthly Debt Payments

Down Payment

Interest Rate (% APR)

Loan Term (years)

The 28/36 rule, then an annuity

Two ratios cap the housing payment: the front-end ratio at 28% of gross income, and the back-end ratio at 36% minus your other debts. The lower wins, and that payment becomes a loan through the present value of an annuity:

payment = min(income × 0.28, income × 0.36 - other debts)
loan    = payment × (1 - (1 + i)^-n) / i     i = APR/12, n = years × 12
price   = loan + down payment

On the defaults - $8,000 income, $500 of other debt, 6.5% over 30 years - the front-end cap is $2,240 and the back-end cap $2,380, so $2,240 is used. That buys a $354,391 loan, and with $60,000 down a price near $414,000.

The payment has to stretch further than this

Lenders mean PITI, not P&I. The $2,240 is supposed to cover property tax, homeowners insurance, HOA dues and PMI as well. Set aside $500 a month for those and only $1,740 is left for the mortgage, which drops the price to about $335,000.
Other debts means minimum payments. Car, student and credit card minimums count; utilities, groceries and childcare do not.
Gross, not take-home. Entering net pay understates what a lender would approve by roughly a quarter.

A browser cannot see your county tax rate, insurance quote, HOA fee or credit score, and score drives both your rate and how far past 36% a lender will stretch. Treat this as a ceiling, not a budget.

Frequently asked questions

How much house can I afford on $8,000 a month?

Around $414,000 with $60,000 down at 6.5%, using the full 28% housing cap. Once taxes and insurance are carved out of that payment the realistic figure is closer to $335,000.

What is the 28/36 rule?

A lending guideline: housing costs at or under 28% of gross monthly income, and all debt payments together at or under 36%. It is still the usual starting point in conventional underwriting.

Can I get a mortgage with a DTI above 36%?

Often yes. Fannie Mae accepts up to 45% and FHA regularly approves 50% or more with strong credit and reserves. This tool sticks to the conservative 36%.