How much house can I afford?
Based on your income, existing debts, and down payment — using the same 28/36 debt-to-income guideline lenders use, with the full monthly breakdown shown.
Your income is the limiting factor here — you're well within the standard back-end debt limit.
How this is calculated
Lenders typically cap your housing payment (principal, interest, taxes, insurance, PMI, and HOA) at 28% of your gross monthly income — the front-end ratio — and cap your total debt payments, including housing, at 36% — the back-end ratio. This calculator finds the highest home price where your estimated monthly housing cost stays under whichever ratio is more restrictive for your situation, then shows the full breakdown at that price.
Frequently asked questions
What is the 28/36 rule?
It's the standard debt-to-income guideline most lenders use. Your housing payment (principal, interest, taxes, insurance, PMI, HOA) shouldn't exceed 28% of your gross monthly income — the front-end ratio. Your total debt payments, including housing, shouldn't exceed 36% — the back-end ratio. Lenders apply whichever is more restrictive for you.
Why does my affordable home price go down if I add debt?
The back-end ratio counts all your monthly debt payments, not just housing. A car loan or student loan payment eats into the 36% ceiling directly, which can force your affordable home price down even though your income hasn't changed — often more than a bigger down payment would help.
Is this the same as pre-approval?
No. This gives you a realistic estimate using standard industry ratios, but actual pre-approval also weighs your credit score, employment history, assets, and the specific lender's overlays. Use this to know roughly where you stand before you talk to a lender, not as a guarantee.
Should I use the maximum I can afford?
Not necessarily. This calculator shows the lending-industry ceiling, not a recommendation. Many buyers are more comfortable well under 28%, especially if income is variable or other savings goals matter. Treat the result as an upper bound to plan around, not a target.