Home affordability calculator
How much house you can afford under the 28/36 rule, with your own property tax, insurance and PMI.
- ๐บ๐ธ US federal & state rules
- See sources
Home price you can afford
$335,890
About $2,333 a month for housing, with $60,000 down
- Loan amount
- $275,890
- Monthly housing budget
- $2,333
- Down payment
- $60,000 (17.9%)
- Limited by
- Housing ratio (28%)
This is an example. Enter your numbers above and press the button to see your own result.
Monthly payment at that price
| Principal and interest | $1,743.81 |
|---|---|
| Property tax | $307.90 |
| Homeowners insurance | $166.67 |
| PMI | $114.95 |
| Total | $2,333.33 |
- This uses the 28/36 guideline. Many lenders approve higher ratios, but a bigger payment leaves less room for savings and repairs.
- Property tax rates and insurance costs vary a lot by state and county. Replace the defaults with numbers for the area you are shopping in.
- Closing costs, usually a few percent of the price, are not included. Keep cash aside for them on top of the down payment.
Show the math
| Gross monthly income | $8,333 |
|---|---|
| Housing cap (28%) | $2,333 |
| Total debt cap (36%) minus other debts | $3,000 โ $500 = $2,500 |
| Budget used | the lower one, $2,333 |
| Rate and term | 6.5% for 30 years |
What to do next
How it works
Your monthly housing budget is the lower of 28% of gross monthly income and 36% of income minus other debt payments. The calculator then finds the highest price where principal, interest, property tax, insurance, HOA and PMI fit that budget.
PMI is added only when the down payment is under 20% of the price. Switching to 31/43 shows the higher limits often cited for FHA loans.
Things to keep in mind
Property tax and insurance are not looked up for you. Check the county tax rate and get an insurance quote for the area you are shopping in, since both vary a lot from place to place.
Lenders may approve more than these ratios. That does not mean the payment will be comfortable. Leave room for repairs, savings and other goals.
Sources
- Fannie Mae Selling Guide B3-6-02, Debt-to-Income RatiosChecked 2026-10-19
Frequently asked questions
How much house can I afford on $100,000 a year?
With $60,000 down, $500 in other debts, a 6.5% rate and the default tax and insurance, the 28/36 rule gives about $336,000. Lower debts or a lower rate raise that number.
What is the 28/36 rule?
Housing costs should stay under 28% of gross monthly income, and all debt payments together under 36%. The calculator uses whichever limit is lower for you.
Why do property tax and insurance matter so much?
They come out of the same monthly budget as the mortgage. Moving from a 1% to a 2% tax rate on a $350,000 home adds about $290 a month, which lowers the price you can afford.
Does this include closing costs?
No. Closing costs usually run a few percent of the price and are paid in cash on top of the down payment.