Home Affordability Calculator
Find out how much house you can afford using the 28/36 rule — the standard lenders use to qualify buyers.
How Lenders Measure Affordability
The 28% Front-End Rule
Lenders prefer that your total housing payment (PITI — principal, interest, taxes, insurance) not exceed 28% of your gross monthly income. This is the "front-end" or "housing ratio."
The 36% Back-End Rule
The back-end or "total debt-to-income" ratio limits all monthly debt payments (housing + car loans + student loans + credit cards) to no more than 36% of gross monthly income. Some lenders allow up to 43% with compensating factors.
Why the Conservative Estimate Matters
Being approved for a maximum loan doesn't mean you should take it. Budget at the lower of the two limits to leave room for savings, emergencies, maintenance, and lifestyle expenses. Many financial advisors suggest keeping housing costs at or below 25% of take-home pay.
Other Factors Lenders Consider
Credit score, employment history, cash reserves, and the type of loan (conventional, FHA, VA) all affect your approval amount. FHA loans allow back-end DTI up to 43%, while VA and USDA loans may have different thresholds.