CalcArcade.

Home Affordability Calculator

Enter your income, monthly debts and down payment. The calculator works out the most you can spend each month and the home price that fits, including property tax, insurance, HOA dues and PMI.

Your numbers

Car loans, student loans, credit card minimums. Do not include rent or the new mortgage.

Lenders commonly use 28%.

Lenders commonly use 36%; some allow up to 43% or more.

Added when your down payment is under 20% of the price.

Result

Estimate for information only, not professional advice. Last reviewed .

Tax year 2026. Tax figures last updated October 29, 2026. Sources.

How we calculate it

Your monthly income is your yearly income divided by 12. Two limits apply: housing costs up to the housing percent (28%) of income, and all debts including housing up to the total debt percent (36%), which leaves that percent of income minus your current debts for housing. The smaller limit is the most you can spend.

Property tax, insurance and HOA dues take part of that amount. The rest pays the loan, so the calculator solves for the price where principal and interest, tax, insurance, HOA and (under 20% down) PMI together equal the limit. The loan is the price minus your down payment.

Assumptions and limits

  • The 28% and 36% limits are common lender guidelines, not rules. Lenders also weigh credit score, savings, job history and the loan type.
  • Just because you can borrow a certain amount does not mean it fits your budget. Add costs for utilities, repairs and the life you want.
  • Closing costs and moving costs are not included in the down payment.
  • Property tax and insurance vary a lot by location; use your own figures.

Frequently asked questions

How much house can I afford on my salary?

A common guide is a home price of about three to four times your yearly income, but the monthly payment limits above give a better answer because they use your debts, rate and down payment.

What are the 28/36 rules?

Housing costs should stay under 28% of gross monthly income, and total debt payments including housing under 36%. They are guidelines many lenders use to judge how much you can borrow.

How does a larger down payment help?

It lowers the loan, so the payment falls, and 20% or more down avoids PMI. Both let the same monthly limit buy a more expensive home.

Why does a lower rate raise the price I can afford?

A lower rate makes each borrowed dollar cost less each month, so the same monthly limit supports a bigger loan.

Related calculators

Worked example (a fixed example using the starting numbers, it does not change as you type)

Inputs: Yearly household income, before tax ($) = 110000; Monthly debt payments ($) = 500; Down payment ($) = 60000; Interest rate (APR %) = 6.5; Loan term (years) = 30; Property tax (% of price per year) = 1.1; Home insurance ($ per year) = 1500; HOA dues ($ per month) = 0; Housing limit (% of income) = 28; Total debt limit (% of income) = 36; PMI rate (% of loan per year) = 0.7.

  • Home price you can afford $365,173.79
  • Most you can spend a month on housing $2,566.67
  • Loan amount $305,173.79
  • Down payment $60,000.00
  • Down payment share 16.43%
  • Principal and interest $1,928.91
  • Property tax $334.74
  • Home insurance $125.00
  • HOA dues $0.00
  • Mortgage insurance (PMI) $178.02
  • Limit that applies housing share

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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.