Home Affordability Calculator
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About Affordability
'How much house can I afford?' has a lender's answer (the most they'll approve) and a budget's answer (what leaves room to live) — the 28/36 rule sketches the first and, used honestly, disciplines the second. Its virtue is symmetry: high existing debts shrink the house budget through the 36% side, which is exactly how it should work.
Enter income, monthly debt payments, saved down payment, and today's rate. You get the binding cap, the monthly housing budget, and the estimated price — with the taxes-and-insurance assumption on the table instead of under it.
Once a price is real, the full payment breakdown lives in the Mortgage Calculator
The 28/36 Math
Two caps, the tighter one wins, then a price:
Cap A = 28% × monthly gross income Cap B = 36% × monthly gross − existing debts Budget = min(A, B) → ~80% to P&I → loan via amortization + down payment
Worked example: $90,000 income with $400 of debts and $40,000 down at 6.5%/30y — the 28% cap binds at $2,100/month, ~$1,680 of it P&I, supporting a ~$266,000 loan → roughly a $306,000 price. Doubling the debts to $800 flips the binding cap to 36% and cuts the price by ~$60k.
Income vs Price
Ballpark prices at 6.5%/30 years with modest debts and 10% down — computed by this calculator's method:
| Household income | Housing budget (28%) | ≈ Affordable price |
|---|---|---|
| $60,000 | $1,400/mo | ≈ $200,000 |
| $90,000 | $2,100/mo | ≈ $306,000 |
| $120,000 | $2,800/mo | ≈ $410,000 |
| $160,000 | $3,733/mo | ≈ $545,000 |
| $200,000 | $4,667/mo | ≈ $680,000 |
Rate sensitivity is brutal at every row: the same $90k income affords ~$60,000 more house at 5.5% than at 6.5% — rates move budgets more than raises do.
Beyond the Ratios
What 28/36 doesn't see: childcare (often rent-sized), income stability, retirement contributions you refuse to sacrifice, and the ownership costs beyond the payment — maintenance runs ~1% of value yearly, plus HOA, utilities, and the furniture the bigger house demands. Many happy owners deliberately buy below their approval; almost no one regrets the margin.
The lender-side fine print: actual underwriting uses DTI limits that can stretch past 36% (some programs into the 40s) with strong credit and reserves — which is why pre-approvals often exceed this calculator. That's the maximum-loan answer, not the good-life answer; the 28/36 output is deliberately the conservative one. Property taxes are the wildcard: at high-tax rates the 20% T&I assumption understates, shaving real price capacity.
Frequently Asked Questions
How much house can I afford on $90,000 a year?
By 28/36 with modest debts: ~$2,100/month of housing, supporting roughly a $300,000 price with a $40,000 down payment at 6.5%. Higher rates, taxes, or debts pull it down — enter your real numbers above.
What is the 28/36 rule?
Housing ≤ 28% of gross monthly income; ALL debt payments ≤ 36%. The tighter cap sets the budget — big car payments literally shrink the house. It's the traditional conservative screen behind most affordability guidance.
Is the 28/36 rule gross or take-home income?
Gross (pre-tax) — which is why it FEELS aggressive against a real budget: 28% of gross can be 35%+ of take-home. Households that budget on net income and land under the caps carry genuine margin.
Why does my pre-approval exceed this number?
Lenders' DTI ceilings run looser than 36% for strong files — pre-approval answers 'the most we'll lend', not 'what leaves room for a life'. The gap between the two numbers is where house-poor happens.
How much down payment do I need?
Programs run from 0% (VA/USDA) through 3–5% (conventional/FHA paths) to the classic 20% that avoids PMI. Less down = bigger loan against the same budget = lower affordable price, plus PMI riding along under 20% — the calculator's down-payment field shows the trade directly.
Do property taxes really change what I can afford?
Materially: the same budget buys visibly less house where taxes run high, because more of the monthly budget feeds the escrow. This calculator's 20% taxes-and-insurance assumption is a national-average stand-in — check a target county's rate before falling in love.
Methodology. This calculator uses standard financial formulas used across the industry. It is reviewed and maintained by the Vast Calculators editorial team.
Last updated · July 11, 2026
Disclaimer. This tool provides estimates for general informational purposes only and is not a substitute for professional financial advice. Always consult a qualified financial advisor before making decisions about your finances.