Home affordability calculator.

See a home price that fits your income and the debts you already pay, using the 28/36 rule. Taxes, insurance and mortgage insurance come out of the budget first, so the price is one you could carry each month.

Your income and debts

Before taxes, for everyone who will be on the loan.

Minimum payments on car, student and personal loans and credit cards. Not rent or utilities.

The home loan

Example: 7.40% is the 30-year fixed Freddie Mac average for the week of Oct 15, 2026 (15-year: 6.71%).

Loan term
More assumptionsTaxes 1.1%, insurance $1,600/yr, PMI 0.6%, 28/36 limits

Property tax rates vary widely by county. Your county assessor or a listing for a similar home shows the local rate.

PMI applies only with less than 20% down. Freddie Mac estimates about $30 to $70 a month per $100,000 borrowed (0.36% to 0.84% a year).

Both are percents of gross monthly income. Fannie Mae allows total debt up to 36% on loans underwritten by hand, 45% with strong credit and reserves, and 50% through its automated system.

What you could afford

Home price up to

$359,144

Monthly payment

$2,683

  • Housing payment, share of income28%
  • Other debts, share of income6.8%
Loan amount$299,144
Principal and interest$2,071.21
Taxes and insurance$462.55
HOA dues and PMI$149.57

With $115,000 a year in income, the 28% housing limit allows $2,683.33 a month for the whole payment. At 7.40% for 30 years with $60,000 down, that supports a home price of about $359,144.

These figures are estimates for planning only and are not a prequalification or an offer. Lenders look at your credit, savings and full finances, and may approve more or less. See our disclosures.

How this is calculated

First the calculator finds your monthly budget from two limits, then it finds the highest price whose full monthly payment fits inside it.

  • Monthly budget

    the smaller of: income ÷ 12 × 28%, and income ÷ 12 × 36% − monthly debts

    $115,000 ÷ 12 = $9,583.33 a month. 28% is $2,683.33; 36% minus $650 in debts is $2,800.00. The smaller, $2,683.33, is the budget.

  • Highest price that fits

    (price − down) × k + price × tax rate ÷ 12 + insurance ÷ 12 + HOA + PMI = budget

    k is the monthly payment per dollar borrowed at your rate and term. Because every part grows in a straight line with the price, the calculator solves for the price directly, and adds PMI only when the loan is over 80% of the price.

The result leaves out closing costs, which Freddie Mac estimates at about 2% to 5% of the purchase price, and cash you keep in reserve. To check the payment on a specific home, use the mortgage payment calculator. To compare buying with renting, try rent vs buy.

Sources

  • Fannie Mae Selling Guide, B3-6-02 Debt-to-Income Ratios (April 2, 2025): 36% maximum for manually underwritten loans, up to 45% with credit score and reserve requirements, 50% for loans underwritten through Desktop Underwriter.
  • CFPB, “What is a debt-to-income ratio?” (last reviewed August 28, 2023).
  • Freddie Mac, Primary Mortgage Market Survey: 30-year fixed 7.40% and 15-year fixed 6.71%, week of October 15, 2026.
  • Freddie Mac My Home, “Breaking down PMI” and “Budgeting for upfront homebuying costs” (accessed October 22, 2026).

Last reviewed October 22, 2026.

Questions about what you can afford

What is the 28/36 rule?

It is a long-standing rule of thumb for a comfortable budget: keep housing costs (principal, interest, taxes, insurance and any HOA or mortgage insurance) under 28% of your gross monthly income, and all monthly debt payments, housing included, under 36%. Whichever limit you reach first sets your budget. It is a guideline; each lender sets its own limits.

What counts as monthly debt?

The CFPB defines your debt-to-income ratio as all your monthly debt payments divided by your gross monthly income. Count the minimum payments on car loans, student loans, credit cards and personal loans, plus child support or alimony you pay. Do not count your current rent, utilities or groceries.

Can a lender approve me for more than this?

It may. Fannie Mae's guidelines cap total debt-to-income at 36% for loans underwritten by hand, allow up to 45% with strong credit and reserves, and up to 50% for loans run through its automated system. Other loan programs set their own limits. A larger approval also means a larger payment, so the 28/36 result is a useful check on what feels manageable.

How does my down payment change what I can afford?

Every dollar down raises the price you can reach without raising the loan. With less than 20% down on a conventional loan you usually pay private mortgage insurance, which uses part of your monthly budget; Freddie Mac estimates about $30 to $70 a month per $100,000 borrowed. Also keep cash for closing costs, which Freddie Mac estimates at about 2% to 5% of the purchase price.

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