How Much House Can I Afford?
A common lender guideline caps housing at 28% of gross monthly income and all debts at 36%. This finds the lower of the two limits and turns it into a home price.
Results
How it works
Max housing payment = the smaller of income / 12 x front ratio and income / 12 x back ratio - monthly debts. Principal and interest budget = max housing - tax, insurance and HOA. Loan = budget x (1 - (1 + r)^-n) / r. Price = loan + down payment.
FAQ
Is 28/36 a hard rule?
No. Many loan programs allow higher ratios. It is a conservative starting point that leaves room for savings.
Gross or take-home income?
Lenders use gross income, so this does too. Check the payment against your take-home budget as well.
Why is the result $0?
Your monthly debts or tax and insurance already use up the limit. Pay down debt or adjust the inputs.
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Estimates, not tax or financial advice. Check important numbers with a qualified professional.