How Much House Can I Afford?
Enter income, debts and down payment to see a home price under the 28/36 rule, the full monthly payment, and how far a lender might stretch.
Estimates only. Uses a 30-year fixed loan, the 28/36 debt-to-income guideline on gross income, and the inputs above. Lender approval depends on credit, loan type, reserves and local costs. Closing costs and maintenance (often 1% to 2% of the home's value a year) are not included.
How much house can I afford?
The quickest honest answer comes from the 28/36 rule. Housing costs stay at or under 28% of gross monthly income, and total debt payments stay at or under 36%. On a $120,000 household income with $500 a month of other debt and $60,000 down, that works out to a home price of about $374,000 at today's rates, with an all-in payment around $2,800 a month (hypothetical, using the defaults above).
Lenders will often approve more. At a 43% debt-to-income ratio the same household could stretch to roughly $497,000. That gap between approved and comfortable is where a lot of people get house-poor.
The payment is more than the mortgage
Principal and interest is only part of it. Property tax, insurance, PMI with less than 20% down and HOA fees all count toward the 28%. Then there's maintenance, which doesn't show up in any lender's math. A common rule of thumb is 1% to 2% of the home's value a year, or $4,000 to $8,000 on a $400,000 house. It arrives in lumps: a roof one year, a water heater the next.
What rates do to the number
| Mortgage rate | Home price under 28/36 |
|---|---|
| 6.32% | about $402,000 |
| 7.32% | about $374,000 |
| 8.32% | about $349,000 |
Same income, same down payment. Each percentage point moves the price by roughly 7%. Hypothetical example using the calculator's defaults.
How I think about it
I'd rather buy below the 28/36 number than at it. The house that fits leaves room to keep investing, keep an emergency fund and take a vacation. The house at the very top of the approval leaves room for none of that. Buying isn't automatically better than renting either. It depends on how long you stay, local prices and what the down payment could earn elsewhere. The Rent vs. Buy Calculator runs that comparison, and You Are Not Throwing Money Away by Renting explains the math behind it.
Sources: Freddie Mac Primary Mortgage Market Survey, 30-year fixed average of 7.32% as of October 22, 2026 (freddiemac.com/pmms). 28/36 debt-to-income guideline as commonly used in mortgage underwriting. Maintenance range is a general rule of thumb; actual costs vary by home and location.
Frequently Asked Questions
What is the 28/36 rule?
A common mortgage guideline: total housing costs (principal, interest, property tax, insurance, PMI and HOA) stay at or under 28% of gross monthly income, and all debt payments including housing stay at or under 36%.
How much income is needed for a $400,000 house?
With 20% down at a 7.32% rate, a 1% property tax rate and $2,400 a year of insurance, the all-in payment is about $2,730 a month. Keeping that at 28% of gross income takes roughly $117,000 a year (hypothetical example).
Do lenders use gross or take-home pay?
Gross income, before taxes. That's one reason a payment a lender approves can still feel tight, since the bills get paid from take-home pay.
Will a lender approve more than the 28/36 rule?
Often, yes. Many lenders allow total debt-to-income ratios in the low to mid 40s, and sometimes higher. The stretch number in the calculator shows a 43% ratio for comparison. Approval is the lender's limit, not a measure of what's comfortable.
How much does a 1% change in mortgage rates change what I can afford?
In the example on this page ($120,000 income, $60,000 down), the price under 28/36 is about $374,000 at 7.32%, about $402,000 at 6.32% and about $349,000 at 8.32%. Each point moves the price by roughly 7%.