A common rule: spend no more than 28% of gross monthly income on housing (mortgage, taxes, insurance). Total debt (including housing) should not exceed 36% of income (the 28/36 rule). Example: 200,000/month income allows up to 56,000/month housing payment.
📂 Finance
🏠 House Affordability Calculator
Calculate how much house you can afford based on income, debts, and down payment. Uses the 28/36 rule used by mortgage lenders worldwide.
✏️ Enter Your Values
✨ Your Result
🦉Owl's Explanation
🏠
Fill in the values above and click Calculate ✨
✅ Trusted Tool
Uses standard 28/36 debt-to-income lending guideline. Actual approval depends on credit score, employment, and lender policies. Free for home buyers. No sign-up needed.
🤔 How Does This Work?
Max housing payment = 28% of gross monthly income
Max total debt = 36% of gross monthly income (housing + existing debt)
Estimates affordable home price using standard mortgage formula
❓ Frequently Asked Questions
What is the 28/36 rule?▼
A standard mortgage affordability guideline: housing costs should not exceed 28% of gross monthly income, and total debt (housing + other debts) should not exceed 36%. Lenders use this to assess loan eligibility.
Should I spend the maximum I can afford on a house?▼
Not necessarily. Lenders calculate maximum affordability, but financial advisors often recommend staying below this to maintain savings capacity, handle emergencies, and avoid being 'house poor'. Consider your total financial goals, not just the maximum loan you qualify for.
A standard mortgage affordability guideline: housing costs should not exceed 28% of gross monthly income, and total debt (housing + other debts) should not exceed 36%. Lenders use this to assess loan eligibility.
Should I spend the maximum I can afford on a house?▼
Not necessarily. Lenders calculate maximum affordability, but financial advisors often recommend staying below this to maintain savings capacity, handle emergencies, and avoid being 'house poor'. Consider your total financial goals, not just the maximum loan you qualify for.