The 28/36 rule
Lenders compare your monthly costs with your gross (pre-tax) monthly income:
- Front-end ratio: housing costs should be no more than 28% of income.
- Back-end ratio: housing plus all other debt payments should be no more than 36%.
Whichever limit is lower sets your maximum housing payment. The calculator then works backwards to the price that payment can support.
Example
With $90,000 income, $400 a month in other debts, $30,000 down and a 6.5% 30-year rate (1.1% tax and $1,500 insurance), the 28% limit allows $2,100 a month for housing. That supports a home of about $299,000.
Ways to afford more house
- Pay down other debts to free up room under the 36% limit.
- Save a bigger down payment, which lowers the loan and may remove PMI.
- Improve your credit score to qualify for a lower rate.
- Look at areas with lower property taxes or no HOA.
Found a home? Check the payment with the mortgage calculator and your ratios with the DTI calculator.
Last reviewed October 2026.
Frequently asked questions
How much house can I afford?
Lenders often use the 28/36 rule: housing costs (mortgage, property tax, insurance and HOA) up to 28% of your gross monthly income, and all debts including housing up to 36%. This calculator uses both limits and shows the home price that fits the lower one.
What counts as monthly debt?
Include minimum payments on car loans, student loans, credit cards, personal loans and child support. Do not include utilities, groceries, phone bills or insurance other than home insurance.
Can I get approved for more than this?
Often, yes. FHA, VA and some conventional loans allow back-end ratios of 43% to 50% for strong borrowers. Being approved for more does not mean it fits your budget, so consider savings goals, childcare and other costs too.
How much should I save for a down payment?
Conventional loans can start at 3% to 5% down, FHA at 3.5% and VA or USDA at 0%. With less than 20% down on a conventional loan you usually pay private mortgage insurance (PMI), which raises the monthly cost.
What property tax rate should I use?
Effective property tax rates in the US range from about 0.3% to over 2% of home value per year depending on the state and county. Check recent listings or your county assessor for a local figure.