How Much House Can I Afford?
Find a realistic price range using the same debt-to-income ratios many lenders start with — then shop by-owner homes with confidence.
Income & debts
Based on the stricter of your housing and total-debt ratios.
Estimates for planning only — not a loan offer, appraisal or tax advice. Results depend on the numbers you enter.
How we calculate it
- Your maximum housing payment is the lower of: income × housing ratio, or income × total-debt ratio − your other monthly debts.
- We subtract monthly taxes, insurance and HOA and solve for the largest loan that fits, adding PMI when your down payment is under 20%.
- Max price = loan + your down payment.
Example
With $110,000 income, $600 in monthly debts, $40,000 down, a 6.5% rate, 1.1% taxes and $1,800 insurance, the housing ratio allows about $2,567/month and the debt ratio about $2,700, so the housing ratio limits you. That supports a home price around the mid-$300,000s.
Next steps
- Compare monthly costs in the mortgage calculator.
- Not sure buying is right yet? Run the rent vs. buy calculator.
- Ready to look? Browse by-owner listings and set up a free alert on Get Started.
FAQ
What is the 28/36 rule?
A common guideline: keep housing costs at or below 28% of gross monthly income and total debt payments (housing plus other debts) at or below 36%. Many loan programs allow higher ratios, but lower ratios leave more breathing room.
Does the result equal what a lender will approve?
Not exactly. Lenders also weigh credit, reserves, employment and loan program rules. Treat this as a planning range and get a pre-approval for a firm number.
Should I borrow the maximum?
Usually not. Budget for maintenance (often 1% or more of value per year), emergencies and savings goals. Many buyers target a payment below their maximum.
Keep crunching the numbers
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Mortgage Calculator
Monthly payment with taxes, insurance, HOA and PMI — plus a full amortization schedule.
Rental Property Calculator
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Rent vs. Buy Calculator
Compare the true cost of renting and buying over the years you plan to stay.
Closing Cost Estimator
Line-by-line closing cost estimate for buyers and sellers.
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8 questions that tell you whether FSBO, flat-fee MLS or an agent fits you best.