UtilityHub

Home Affordability Calculator

Find out how much house your income can comfortably support.

Your numbers

Max monthly housing payment
$1,866.67
Max home price you can afford
$369,158.58
Max loan amount
$295,326.86
Front-end limit (28% of income)
$1,866.67
Back-end limit (36% minus debts)
$1,900.00

Max home price at different income ratios

How this calculator works

Falling in love with a house you cannot comfortably afford is one of the most expensive mistakes in personal finance. Lenders answer "how much can I borrow" with the 28/36 rule: spend no more than 28% of gross monthly income on housing (front-end ratio) and no more than 36% on all debts combined including housing (back-end ratio). This home affordability calculator applies both limits, converts the stricter one into a loan amount at your rate and term, then grosses it up by your down payment into a maximum home price.

The chart shows how the answer moves as you stretch the income ratio — useful when deciding how conservative to be. Remember that the rule is a ceiling, not a target: taxes, insurance, maintenance (budget roughly 1% of the home value per year) and HOA dues all sit on top of the mortgage. In high-cost areas, many buyers also weigh the back-end ratio more heavily because student loans or car payments eat the budget fast. Use this calculator before you browse listings, not after — it keeps your search honest and your offer letters credible.

Frequently asked questions

What is the 28/36 rule?
A traditional lending guideline: housing costs should not exceed 28% of gross monthly income, and total debt payments (housing plus car loans, student loans, minimum card payments) should not exceed 36%.
Does this include property taxes and insurance?
The ratios apply to total housing cost, which lenders define as PITI: principal, interest, taxes and insurance. Our calculator converts the payment limit to a price; budget taxes and insurance inside that payment.
Can I afford more if I have no other debts?
Yes — with zero other debts, the back-end ratio equals the front-end ratio, so you qualify for the full 28% housing budget. Existing debts are what usually drag the number down.
Is the maximum price the price I should pay?
No. It is the most a lender would likely approve. Most financial planners suggest staying 10–20% below the maximum to leave room for maintenance, savings and life surprises.
Disclaimer: Results are estimates for planning purposes only and are not financial advice. Actual loan terms, taxes and investment returns vary — consult a qualified professional before making financial decisions.