Home Affordability Calculator
How much house can you afford? Enter your income, debts, down payment, and rate — we estimate your price range using the standard 28/36 debt-to-income guideline. Results update live.
Based on the standard 28/36 debt-to-income guideline. An educational estimate — lenders weigh credit, reserves, and program rules. Not a loan approval or financial advice.
How this is calculated
We apply the standard 28/36 debt-to-income guideline: your total housing payment stays at or below 28% of gross monthly income, and housing plus all other debts stays at or below 36%. The lower of those two caps is your maximum monthly housing budget (PITI):
max PITI = min(0.28 × monthly income, 0.36 × monthly income − monthly debts)
From that budget we subtract estimated property tax, insurance, and HOA, then solve the standard amortization formula for the loan you can carry at your rate and term, and add your down payment to get the home price. Because property tax depends on the price, we iterate to a stable figure. Key assumptions: property-tax rate, insurance, and HOA are the values you enter (defaults are illustrative U.S. figures). Lenders also weigh credit, reserves, and program rules, so their pre-approval is the number that counts. This is not a loan approval.
This is an automated estimate, not legal, financial, or appraisal advice. Consult a licensed professional for matters affecting your specific situation.
Common questions
How much house can I afford?
A common guideline is the 28/36 rule: keep housing costs under about 28% of gross monthly income and total debt under about 36%. Our calculator applies that to your income, debts, down payment, and rate to estimate a price range. Lenders also weigh credit, reserves, and program rules.
What is the 28/36 rule?
It's a debt-to-income guideline: spend no more than ~28% of gross monthly income on housing (principal, interest, taxes, insurance) and no more than ~36% on total monthly debt including housing. Many lenders allow higher ratios for strong borrowers.
Is this a loan pre-approval?
No. It's an educational estimate. A lender's pre-approval reviews your credit, income, and assets and is the figure that counts when you make an offer.
This calculator provides educational estimates only, using figures you enter — it is not financial or lending advice or a loan approval. LMH Venture Group LLC d/b/a ListMyHomes.com™ is a licensed Tennessee real estate firm that acts only as a neutral facilitator. Consult a lender and a licensed professional for your situation.