Home Affordability Calculator: How Much House Can I Afford?
How much house you can afford comes down to four things: your income, your existing monthly debts, your down payment, and the interest rate you qualify for. This calculator takes those and estimates a comfortable home price for your next home purchase, then shows the monthly payment that goes with it.
The number you can afford vs. the number you'll be approved for
This is the most important thing to understand, and most calculators skip it. There are two different numbers. The first is what you can comfortably afford, a payment that leaves room in your budget for everything else in your life. The second is the maximum a lender will approve you for, which is often considerably higher. Lenders qualify you based on your debt-to-income ratio, and conventional loans can approve DTIs up to 45-50% through automated underwriting. FHA can approve higher still when compensating factors are present, and VA loans use a residual income test rather than a hard debt-to-income cap, so eligible veterans can often qualify for more than a strict ratio would suggest. Just because you can be approved at that level doesn't mean you should borrow that much. The gap between those two numbers is where financial stress lives.
The 28/36 guideline
A common starting point is the 28/36 rule: keep your housing payment under 28% of your gross monthly income, and your total debt (housing plus car, student loans, credit cards) under 36%. It's a conservative, sensible benchmark for a comfortable budget. But treat it as a guideline, not a limit, real lenders routinely approve higher, as our DTI guide explains. Use 28/36 to find a payment you'll be happy with, then know you have room above it if you choose to use it.
What to enter for the most accurate estimate
Use your gross (pre-tax) income, and include a co-borrower's income if someone's buying with you. For debts, include the monthly payments that show up on a credit report, car loans, student loans, credit card minimums, not utilities or groceries. Enter your real available down payment, and if you're not sure of your rate, the calculator uses a current market estimate. Don't forget that property taxes and insurance vary a lot by location and are part of what lenders count.
What the calculator can't see
It gives you a strong estimate, but it can't see your credit score, your reserves, or the specific loan program that fits you, all of which affect your real number. A zero-down VA or USDA loan changes the math entirely from a 20%-down conventional. That's where an actual conversation helps: I can run your real scenario across programs and tell you what you'd actually qualify for, not just what a formula estimates.
