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Estimate how much house you can afford from income, debts, down payment, rate and term using the 28/36 rule.
Estimate how much house you can afford from income, debts, down payment, rate and term using the 28/36 rule.
Enter values above and click Calculate — results will appear here with the formula explained.
The 28/36 rule is a common lender guideline: housing costs (PITI) up to 28% of gross monthly income, and all debts including housing up to 36%. This tool takes the more restrictive of the two to estimate affordable PITI, then inverts the mortgage payment formula to find the loan amount that fits that PITI, and adds down payment for price. This 28/36 guideline comes from US mortgage underwriting (CFPB, Fannie Mae) — some lenders now allow 36/43 or higher, but 28/36 remains the conservative planning anchor.
Which cap binds you reveals your financial shape: if the 28% housing cap binds, income is the constraint — earn more or buy less house. If the 36% total-debt cap binds, existing debts are the constraint — every $500/month in car and student-loan payments erases roughly $80,000–$100,000 of home-buying power at 6–7% rates. Paying down debts before house-hunting is often the highest-leverage affordability move available.
The model estimates principal and interest from PITI directly; property tax and insurance are not modeled separately — subtract them from PITI for a stricter price if needed. It assumes 0% PMI and no HOA. In high-tax states or HOA-heavy markets these exclusions are material: $500/month in tax-plus-HOA consumes the same budget as roughly $80,000 of loan, so enter debts generously or haircut the resulting price by 10–15% as a reality margin.
Down payment moves price almost dollar-for-dollar since the loan amount derives from PITI — but its second-order effects matter more: crossing 20% down typically removes PMI ($100–300/month on typical loans), improves rate tiers, and signals reserves that strengthen offers. Gift funds, down-payment assistance programs and 401(k) loans each change the picture differently; model the allowed versions explicitly rather than assuming all cash is equal.
Beyond PITI, ownership carries 2–5% of price yearly in costs this tool excludes: maintenance (~1%), utilities delta, HOA, plus closing costs (2–5% once) and moving. A $315,000 home means roughly $6,000–$15,000 yearly beyond the mortgage line — the 'affordable' price must leave room for these or the first roof repair becomes a credit event. Keep 3–6 months of total housing costs liquid after closing, not just the down payment.
Use this as a starting offer ceiling, then get pre-approval with actual credit, debts and lender overlays for the authoritative number. Pre-approval (verified) beats pre-qualification (stated) with sellers, and rate-shopping within a focused window typically scores as a single inquiry. Re-run these numbers with the actual approved rate before writing offers — a half-point swing moves the ceiling by tens of thousands.
Estimate how much house you can afford from income, debts, down payment, rate and term using the 28/36 rule. Formula: Max PITI = min(0.28*monthlyIncome, 0.36*monthlyIncome - debts).
The 28/36 rule is a common lender guideline: housing costs (PITI) up to 28% of gross monthly income, and all debts including housing up to 36%. This tool takes the more restrictive of the two to estimate affordable PITI, then inverts the mortgage payment formula to find the loan amount that fits that PITI, and adds down payment for price. This 28/36 guideline comes from US mortgage underwriting (CFPB, Fannie Mae) — some lenders now allow 36/43 or higher, but 28/36 remains the conservative planning anchor.
Which cap binds you reveals your financial shape: if the 28% housing cap binds, income is the constraint — earn more or buy less house. If the 36% total-debt cap binds, existing debts are the constraint — every $500/month in car and student-loan payments erases roughly $80,000–$100,000 of home-buying power at 6–7% rates. Paying down debts before house-hunting is often the highest-leverage affordability move available.
The model estimates principal and interest from PITI directly; property tax and insurance are not modeled separately — subtract them from PITI for a stricter price if needed. It assumes 0% PMI and no HOA. In high-tax states or HOA-heavy markets these exclusions are material: $500/month in tax-plus-HOA consumes the same budget as roughly $80,000 of loan, so enter debts generously or haircut the resulting price by 10–15% as a reality margin.
Down payment moves price almost dollar-for-dollar since the loan amount derives from PITI — but its second-order effects matter more: crossing 20% down typically removes PMI ($100–300/month on typical loans), improves rate tiers, and signals reserves that strengthen offers. Gift funds, down-payment assistance programs and 401(k) loans each change the picture differently; model the allowed versions explicitly rather than assuming all cash is equal.
Beyond PITI, ownership carries 2–5% of price yearly in costs this tool excludes: maintenance (~1%), utilities delta, HOA, plus closing costs (2–5% once) and moving. A $315,000 home means roughly $6,000–$15,000 yearly beyond the mortgage line — the 'affordable' price must leave room for these or the first roof repair becomes a credit event. Keep 3–6 months of total housing costs liquid after closing, not just the down payment.
Use this as a starting offer ceiling, then get pre-approval with actual credit, debts and lender overlays for the authoritative number. Pre-approval (verified) beats pre-qualification (stated) with sellers, and rate-shopping within a focused window typically scores as a single inquiry. Re-run these numbers with the actual approved rate before writing offers — a half-point swing moves the ceiling by tens of thousands.
With $85k income ($7,083/mo), $500 debts, $40k down at 6.5% for 30y, affordable PITI is about $1,483/mo (28% rule tighter), implying about $275k loan + $40k down ≈ $315k home price. Clear the $500 debts first and the 36% cap loosens dramatically — the same income then supports roughly $60,000+ more house, showing why lenders stare at the debt column.
Last reviewed: September 2026 · Report an error