Find out how much house you can afford based on income, debts, down payment, and rate. Includes conservative/moderate/aggressive scenarios, rate sensitivity, and 15 vs 30-year comparison.
| Scenario | Housing Ratio | Monthly Payment | Loan Amount | Home Price | Comfort |
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| Rate | Monthly Payment | Max Loan | Home Price | vs Your Rate |
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A common guideline is to keep your monthly housing payment at or below 28% of your gross monthly income. On a $100,000/year salary that's $2,333/month. At 7% for 30 years, that payment supports roughly a $350,000 loan. Add your down payment to find the total home price you can target.
The 28/36 rule suggests keeping your housing payment below 28% of gross monthly income, and all debt payments (housing plus car loans, student loans, credit cards) below 36%. It's a budgeting guideline, not a law, but many lenders use similar thresholds during underwriting.
Your debt-to-income (DTI) ratio compares monthly debt payments to gross monthly income. Most conventional lenders prefer a total DTI below 43%. High existing debts leave less room for a mortgage payment, directly reducing how much home you can afford.
A larger down payment reduces the loan amount, lowers the monthly payment, and can eliminate PMI once you reach 20%. It directly increases the home price you can reach at the same monthly payment. However, depleting savings entirely can leave you cash-poor after closing.
A 30-year mortgage gives you a lower monthly payment, which means you can afford a more expensive home on the same income. A 15-year mortgage builds equity faster and costs significantly less in total interest but has higher monthly payments. Your choice depends on cash flow, how long you plan to stay, and your total financial picture.
This calculator estimates affordability based on income, debt, rate, and term. It does not include property taxes, homeowners insurance, HOA fees, PMI, or maintenance costs — all of which add to your real monthly housing cost. Factor in roughly 1–1.5% of home value per year for taxes and insurance combined when budgeting.
This calculator works backwards from your income to find a home price. It starts with the housing ratio — typically 28% of gross monthly income — to find a target monthly payment. It then uses the amortization formula to convert that payment into a maximum loan amount at your chosen rate and term. Add the down payment and you have an estimated home price.
The 28/36 rule is one of the most widely used affordability guidelines. It has two parts:
This calculator applies the front-end ratio to the mortgage payment (P&I only) and shows your back-end DTI separately. Real lenders also add property taxes and insurance, which can add 0.5–1.5% of home value per year to your true housing cost.
Rate sensitivity is one of the most underappreciated factors in home affordability. On a $350,000 loan over 30 years, a 1% rate increase raises your payment by roughly $220/month — that's $2,640/year or $79,200 over the life of the loan. The rate sensitivity table in this calculator shows exactly how your affordable home price changes at different rates.
The 30-year mortgage gives you a lower monthly payment, which means you qualify for a larger loan at the same income. But the 15-year mortgage builds equity twice as fast and can save six figures in total interest. On a $350,000 loan at 7%, the 30-year total interest cost is roughly $487,000 — the 15-year total is around $218,000. That's a $270,000 difference.
The estimated home price shown here is based on the mortgage payment only. Real total housing costs include:
A complete picture of housing affordability should include all of these. Subtract estimated taxes and insurance from your target monthly payment before running this calculator to get a more conservative loan amount.
The scenarios table in this calculator shows your affordable home price at three different housing ratios. The conservative 25% scenario gives you more buffer for taxes, insurance, and savings. The moderate 28% is the classic guideline. The aggressive 33% is where some buyers push when prices are high — but it leaves little margin for rate increases or unexpected expenses.