What is the 28/36 rule?

Housing costs under 28% of gross income, total debt under 36%. Used by most mortgage lenders.

How does my down payment affect affordability?

Larger down payment means smaller loan, lower payments, and potentially no PMI.

What costs does this calculator include?

Principal, interest, property taxes, insurance, and PMI. Does not include HOA, maintenance, or utilities.

What is the difference between conservative and aggressive scenarios?

Conservative uses 25% ratio, standard uses 28%, aggressive uses 36%. We recommend standard or conservative.

How Much House Can I Afford? Calculator

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Affordability Calculator

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Max Home Price

—

conservative estimate

Max Monthly Housing

—

28% of gross income

Max All Debts

—

36% of gross income

Current DTI

—

existing debts only

28% Housing Rule

—28% limit

36% Total Debt Rule

—36% limit

Budget Scenarios

These are three common lending guidelines — not three options you must choose between. Most lenders use the Standard (28%) rule. Red DTI means that scenario exceeds the 36% total debt guideline.

Scenario	Max Price	Monthly P&I	Total Monthly	DTI

Within guideline (≤36% DTI)Exceeds 36% total debt limit

Affordability Calculator FAQ

How much house can I afford on my salary?

The 28/36 rule is a lending guideline used by most mortgage lenders. The '28' means your housing expenses (mortgage payment, property taxes, insurance) should not exceed 28% of your gross monthly income. The '36' means your total monthly debt payments (housing plus car loans, student loans, credit cards) should not exceed 36% of gross income. This calculator shows both limits and flags when your scenario exceeds either threshold.

A larger down payment means a smaller loan, which means lower monthly payments and potentially no PMI. This lets you afford a more expensive home within the same monthly budget. Putting 20% down also eliminates Private Mortgage Insurance (PMI), which can add $100–$300/month. However, draining your savings for a bigger down payment has opportunity costs — you could invest that money elsewhere. Compare your options side-by-side with our rent vs buy calculator to see if buying makes sense in your market.

This calculator factors in principal and interest, property taxes, homeowners insurance, and PMI (if your down payment is under 20%). It does not include HOA fees, maintenance costs, or utilities, which vary by property. For a complete picture of homeownership costs, add 1–2% of the home value per year for maintenance and any applicable HOA dues to the monthly payment shown.

The conservative scenario uses a 25% housing-to-income ratio (lower than the standard 28%), giving you more breathing room in your budget. The standard scenario uses the industry-standard 28% ratio. The aggressive scenario stretches to 36%, which some lenders will approve but leaves less room for savings and emergencies. We recommend the standard or conservative approach unless you have very stable income and low expenses.

Lenders look at your debt-to-income ratio, credit score, employment history, and down payment. Most conventional loans require a DTI under 43%, though some programs allow up to 50%. This calculator uses the stricter 28/36 rule as a baseline. Your actual pre-approval amount may differ. For a full picture, pair this with our mortgage calculator to see exact monthly payments on your budget.

28% Housing Rule

36% Total Debt Rule

Budget Scenarios

Affordability Calculator FAQ

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