How much house can I afford?
This calculator uses the 28/36 rule that many mortgage lenders apply:
- Your total housing payment (principal, interest, property tax and insurance) should be no more than 28% of your gross monthly income.
- All of your monthly debt payments, including the new mortgage, car loans, student loans and minimum credit card payments, should be no more than 36% of gross monthly income.
The calculator takes the lower of the two limits, then works out the home price that payment can support with your down payment and interest rate, assuming a 30-year loan and typical property tax and insurance costs.
Before you shop
- Lenders may approve you for more than this amount. Approval is not the same as a comfortable budget.
- Remember closing costs (often 2% to 5% of the loan), moving costs and an emergency fund.
- Check the full monthly cost of a specific home with the mortgage calculator.
Frequently asked questions
What is the 28/36 rule?
It is a guideline lenders use: spend no more than 28% of gross monthly income on housing and no more than 36% on all debt payments combined.
Does a bigger down payment help?
Yes. More cash down lowers the loan amount and monthly payment, and putting down 20% or more on a conventional loan avoids private mortgage insurance.
Should I include my spouse's income?
Include all income that will be on the mortgage application. If only one person will apply, use only that person's income and debts.