How to Calculate How Much House Can I Afford?
What is How Much House Can I Afford??
A house affordability calculator determines the maximum home price you can comfortably purchase based on income, debts, down payment, and interest rate. Most lenders use the 28/36 rule: housing costs ≤28% of gross income, all debts ≤36%.
Step-by-Step Guide
- 128% rule: max mortgage payment = gross monthly income × 28%
- 236% DTI rule: all monthly debts ≤ 36% of gross monthly income
- 3Subtract property tax, insurance, and HOA from the housing budget
- 4Remaining amount determines maximum mortgage → work back to home price
Worked Examples
Input
$80,000 income, $500 other debts, 7% rate, 20% down
Result
Max home ~$380,000
Based on 28/36 rule
Input
$120,000 income, no debts, 6.5% rate, 10% down
Result
Max home ~$560,000
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