Home affordability calculator

How much house can you afford? Estimate a home price from your income, debts and down payment using the debt-to-income limits lenders use, and see the full monthly payment with taxes and insurance.

By OpenBookMoney Editors · Free, no sign-up · Updated Oct 18, 2026

Home affordability calculator

Estimate how much house fits your budget using the debt-to-income guidelines lenders commonly apply.

Car, student loan and minimum credit card payments.
You could afford a home up to $386,317 With $60,000 down and a $326,317 loan at 6.50%
Monthly housing payment $2,567
Loan amount $326,317
Down payment share 15.5%
Debt-to-income (housing / total) 28% / 35%

Your down payment is 16% of the price, so lenders will likely add mortgage insurance. A rate 1 point lower would raise your budget to about $418,124.

Monthly payment breakdown $2,567 total
  • Principal & interest$2,063
  • Property tax$354
  • Home insurance$150
  • HOA dues$0
Comfortable · 28/36 $386,317 Leaves more room for saving and surprises.
Stretch · 36/43 $487,643 Near the upper limit many lenders allow.

How it’s calculated

Your maximum housing payment is the lower of two limits: front-end (housing ÷ gross monthly income, 28% or 36%) and back-end ((housing + other debts) ÷ income, 36% or 43%). We then solve for the home price whose principal and interest, property tax, insurance and HOA dues add up to that payment.

Does not include mortgage insurance (often required below 20% down), closing costs or lender-specific rules. Estimates only — not a loan approval.

How to use the home affordability calculator

  1. Choose a guideline: Comfortable (28/36) or Stretch (36/43).
  2. Enter your gross annual income (before tax) and your monthly debt payments, such as car loans, student loans and credit card minimums.
  3. Enter your down payment, the mortgage rate and the loan term.
  4. Add your property tax rate, yearly homeowners insurance and monthly HOA dues.

You’ll see the highest price that keeps your payment within the guideline, the monthly payment split into principal and interest, taxes, insurance and HOA dues, and both of your debt-to-income ratios.

How lenders decide what you can afford

Lenders compare your monthly payments with your gross monthly income. They look at two ratios:

Front-end ratio = monthly housing payment ÷ gross monthly income
Back-end ratio = (housing payment + other monthly debts) ÷ gross monthly income

The comfortable guideline keeps housing at or below 28% of gross monthly income and all debts at or below 36%. The stretch guideline allows 36% and 43%. The calculator takes whichever limit is lower as your maximum housing payment, then works backward to a price: the loan payment, property tax and insurance all have to fit inside it. Some loan programs allow higher ratios, but a bigger payment leaves less room for saving and surprises.

Example: $110,000 income and $60,000 down

Hypothetical: $110,000 gross income, $600 a month in other debts, $60,000 down, 6.5% 30-year rate, 1.1% property tax, $1,800 a year for insurance.
GuidelineHome priceMonthly paymentDebt-to-income
Comfortable (28/36)$386,317$2,56728% / 35%
Stretch (36/43)$487,643$3,30036% / 43%
Comfortable, rate 1 point lower (5.5%)$418,124$2,56728% / 35%

In the comfortable case, the $2,567 payment is $2,063 of principal and interest, $354 of property tax and $150 of insurance. A rate one point lower adds about $32,000 of buying power for the same payment. If other debts were $1,200 a month instead of $600, the comfortable budget would fall to about $322,000, because the 36% limit would then hold you back first.

Costs to plan for beyond the monthly payment

  • Closing costs: lender, appraisal and title fees, often 2% to 5% of the price, paid when you buy.
  • Mortgage insurance: with less than 20% down on a conventional loan, lenders usually add private mortgage insurance (PMI). This estimate doesn’t include it.
  • Maintenance: many owners set aside around 1% of the home’s value a year for repairs.
  • Utilities and commuting: a bigger or more distant home can cost more every month.
  • Savings left over: keep an emergency fund after your down payment. Our emergency fund guide explains how much.

How to afford more house without overstretching

  • Pay down other debts first. Once the 36% limit is what holds you back, every $100 of monthly debt you clear raises your budget.
  • Improve your credit score to qualify for a lower rate. See our guide to credit scores.
  • Save a bigger down payment: you borrow less and may avoid PMI at 20% down.
  • Compare loan offers by APR, not just the rate. Our APR vs. APY guide explains why.
  • Check the payment on a specific price with our mortgage calculator.

Frequently asked questions

How much house can I afford on $100,000 a year?

With $60,000 down, $600 a month of other debts, a 6.5% rate, 1.1% property tax and $1,800 a year for insurance, the comfortable 28/36 guideline points to about $354,000, and the stretch guideline to about $444,000. Enter your own numbers for your range.

What is the 28/36 rule?

A common guideline: spend no more than 28% of gross monthly income on housing and no more than 36% on all debts, including housing. Lenders use similar debt-to-income limits when they approve a mortgage.

Does the calculator include PMI?

No. If you put down less than 20% on a conventional loan, add private mortgage insurance to the monthly cost. A lender can quote it for you.

Should I buy at the top of my budget?

Not necessarily. The most a lender will approve isn’t always comfortable. Leave room for savings, retirement contributions and surprises; the comfortable guideline is a safer place to start.

Is it better to rent or buy?

It depends on prices, rents and how long you’ll stay. Our rent vs. buy calculator compares the two over time.

Estimates for planning only, not a loan approval. Lenders also look at your credit, savings, income history and the loan program.