How Much House Can I Afford?

Enter your financial details to find your maximum home price, see monthly payment breakdowns, and understand how lenders evaluate your budget.

Your Finances

$
$
Car loans, student loans, credit cards, etc.
$
%
%
$ /yr
$ /mo
%
Applied if <20% down
Maximum Home Price
$0
Based on the 28% front-end DTI rule
Conservative
$0
25% of gross income
Monthly payment$0
Recommended
28% front-end DTI
Monthly payment$0
Stretch
$0
36% back-end DTI
Monthly payment$0

Debt-to-Income Ratio

Safe
OK
Risky
Danger
0% 28% 36% 50% 100%
Front-End DTI (housing only)
0%
Back-End DTI (housing + debts)
0%

Monthly Payment Breakdown

Principal & Interest
Property Tax
Insurance
PMI
Total Monthly $0

Rules of Thumb for Home Buying

The 28/36 Rule

Most lenders want your housing costs (mortgage, taxes, insurance) to stay under 28% of your gross monthly income (front-end ratio), and your total debt payments under 36% (back-end ratio).

On $85,000/yr income:
28% = $1,983/mo max housing
36% = $2,550/mo max total debt

The 3x Income Rule

A simple guideline: your home price should be roughly 3 times your annual gross income. This is a rough starting point -- your actual affordability depends on debts, rates, and down payment.

On $85,000/yr income:
3x = $255,000 home price
Conservative but safe target

The 20% Down Payment

Putting 20% down lets you avoid Private Mortgage Insurance (PMI), which typically costs 0.3-1.5% of the loan annually. Less than 20% down means higher monthly payments.

On a $300,000 home:
20% down = $60,000
PMI savings: ~$100-375/mo