Which limit usually binds — the 28% or the 36%?

It depends on how much other debt you carry. With little or no other debt, the 28% housing limit usually binds first. With significant car payments, student loans, or credit card debt, the 36% total-debt limit often becomes the tighter constraint.

Does this include HOA fees?

No — this estimates principal, interest, property tax, and insurance (PITI) only. If your home has HOA dues, budget for those separately on top of this estimate.

Can I actually get approved for more than the 28/36 rule suggests?

Often yes — many lenders approve debt-to-income ratios above 36%, especially with strong credit or under FHA/VA loan programs. This tool shows the traditional conservative guideline, not any specific lender's maximum.

Why does a bigger down payment help more than just reducing the loan?

Because it does two things at once: it directly reduces the loan amount, and it frees up more of your fixed monthly housing budget for principal and interest rather than tax and insurance — both push the affordable price up.

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Finance

Home Affordability Calculator

Maximum home price from income, debts, and the 28/36 rule.

🔒 Runs entirely in your browser — nothing here is ever uploaded

Last reviewed 2026-08-25

About the Home Affordability Calculator

Estimates the maximum home price you can afford using the 28/36 rule — the mortgage-industry guideline that caps housing costs at 28% of gross monthly income and total debt at 36%, whichever is more restrictive.

How to use it

Enter your Annual gross income and any Other monthly debts (car, student loans, credit cards).
Enter your Down payment available, Interest rate, and Loan term.
Enter typical Property tax and Home insurance rates for your area, each as a percent of home value per year.
Read your maximum affordable home price and the monthly breakdown in the result panel.

Formula

Front-end limit = 28% × gross monthly income (covers principal, interest, tax, and insurance — PITI)
Back-end limit = 36% × gross monthly income − other monthly debts
Maximum monthly housing budget = the smaller of the two

The maximum home price is then solved so that its principal & interest payment plus its estimated tax and insurance exactly fill that monthly budget, given your down payment, rate, and term. Widely known as the 28/36 rule — a guideline, not a law, that most conventional mortgage underwriting still references.

Worked example

On $95,000/year income with $400/month in other debts, a $40,000 down payment, and a 6.5% 30-year loan, the maximum home price comes out to about $326,000 — with the front-end (28% housing) limit as the binding constraint here, since $400/month in other debts isn't yet enough to make the back-end (36% total-debt) limit the tighter one. Push other monthly debts above roughly $630 on this same income and the back-end limit takes over instead.

Recommendations

• Try zeroing out your other monthly debts to see how much they're actually costing you in home-buying power.
• A larger down payment raises your affordable price by more than the down payment amount itself, since it also lowers the loan (and therefore the P&I) you need to fit inside the same monthly budget.
• Many lenders allow debt-to-income ratios above 36% — this tool shows the traditional guideline, not any specific lender's actual limit.

Frequently asked questions

A mortgage-industry guideline: your total housing costs (principal, interest, tax, and insurance — PITI) shouldn't exceed 28% of gross monthly income, and all debt combined shouldn't exceed 36%. It's a guideline lenders commonly reference, not a legal requirement.