House Affordability Calculator
Estimate the most house you can afford from your income, debts, down payment and mortgage rate, using the 28/36 rule.
Home price you can afford
357,530.76
- Loan amount
- 297,530.76
- Max monthly housing payment
- 2,333.33
- Principal & interest
- 1,880.60
- Property tax per month
- 327.74
The 28/36 rule is a common lender guideline, not a guarantee of approval. PMI (if under 20% down) is not included.
Show the work
Most you can spend on housing a month
min(housing % × income ÷ 12, debt % × income ÷ 12 − debts)
min(28% × 100,000.00 ÷ 12, 36% × 100,000.00 ÷ 12 − 500.00) = 2,333.33
Left for the mortgage and property tax
max − insurance ÷ 12 − HOA
2,333.3333 − 1,500.00 ÷ 12 − 0.00 = 2,208.33
Rate per period
i = annual rate ÷ 100 ÷ 12
6.5 ÷ 100 ÷ 12 = 0.005416666667
Number of months
n = years × 12
30 × 12 = 360
Payment per 1 borrowed, k
PMT = P × i ÷ (1 − (1 + i) to the power of −n)
1 × 0.005416666667 ÷ (1 − (1 + 0.005416666667) to the power of −360) = 0.006320680235
Home price
(left + down × k) ÷ (k + tax % ÷ 100 ÷ 12)
(2,208.333333 + 60,000.00 × 0.006320680235) ÷ (0.006320680235 + 1.1 ÷ 100 ÷ 12) = 357,530.76
Estimates for general information only — not financial advice.
How it works
Max housing payment = min(28% × monthly income, 36% × monthly income − other debts); price = (max − insurance − HOA + down × k) ÷ (k + tax rate ÷ 12), where k = monthly payment per $1 borrowed
Questions
- How does the house affordability calculator work?
- Max housing payment = min(28% × monthly income, 36% × monthly income − other debts); price = (max − insurance − HOA + down × k) ÷ (k + tax rate ÷ 12), where k = monthly payment per $1 borrowed.
- What do I need to enter?
- Gross annual income, Other monthly debt payments, Down payment, Annual interest rate, Loan term, Property tax, Home insurance per year, HOA per month, Housing limit, Total debt limit. Optional fields can be left blank.
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