What is the 28/36 rule?

A common lender guideline: your total monthly housing payment should be at most 28% of gross monthly income (front-end), and your housing plus all other debt payments at most 36% (back-end). Lenders qualify you on the more restrictive of the two.

Private mortgage insurance (PMI) is typically required when your down payment is below 20%. It adds roughly 0.5%–1% of the loan annually to your payment until you reach 20% equity. Reaching 20% down removes it.

Is this a guaranteed loan amount?

No. This is a qualifying estimate based on the 28/36 rule. Your actual approval depends on credit score, reserves, debt-to-income, lender overlays, and advertised rates. Use it as a budget guide, not a preapproval.

Home Affordability Calculator

How much house can you actually qualify for? Based on your income and debts.

Last updated: September 5, 2026

Your answer

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Your total monthly housing payment, broken into components.

What can you truly afford?

"How much house can I afford" is the question that sets borrowers up for the most regret — because the answer banks give you is often more than you can comfortably afford. This tool models the qualifying cap using the standard lender 28/36 rule, then shows you the real monthly cost so you can decide what's comfortable, not just what's approved.

The 28/36 rule, explained

Lenders use two ratios to set your ceiling:

Front-end (28%): your total housing payment — principal, interest, property tax, insurance, HOA, and PMI — should be ≤ 28% of your gross monthly income.
Back-end (36%): your total monthly debt (housing + credit cards + auto + student loans) should be ≤ 36% of gross income.

The calculator takes the more restrictive of the two. So if you have big student loan or car debt, the back-end ratio binds and your affordable home drops accordingly.

Why PMI is the hidden tax of a small down payment

Put less than 20% down and you'll likely pay private mortgage insurance — a monthly charge (typically 0.5%–1% of the loan a year) that protects the lender, not you. It can add $150–$500 a month. The calculator applies PMI only when you're below 20% down, and you can see it as a separate cost. Sometimes paying a higher down payment to cross 20% is the smarter move — run both to see.

What the calculator deliberately ignores

Credit score: it can raise or lower your qualifying rate by a point or more.
Reserves: some lenders want months of payments in the bank.
Lender overlays: individual lenders can be more conservative than the rule.
Living costs beyond housing: the 28/36 rule is about qualifying, not about whether you can still save, travel, and handle surprises.

Methodology & sources

Uses the standard 28/36 lending rule with a closed-form solve for max home price. Defaults: income from the U.S. Census median household income; rate from Freddie Mac PMMS (6.70%); these are editable.

Frequently asked questions

Is this what a lender will preapprove me for?

Close, but not exact. Your lender will factor your credit score, reserves, and specific program. Use this as a budget sanity-check, then get a real preapproval.

Should I put down exactly 20% to avoid PMI?

Only if you can afford it without draining emergency savings. Sometimes a smaller down payment plus PMI is better than wiping out your reserves — compare both.

Why does the affordable price drop when I add debt?

Because the back-end (36%) ratio includes all your monthly debt. More debt eats into the same 36% budget, leaving less room for housing.

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