How much house can you afford?
This runs the same two debt-to-income ratios a lender runs, then solves backwards for a purchase price. You also get the part most calculators hide: which of the two limits is actually holding you back, and therefore what to fix. Nothing is saved, and there is no email wall.
A home at this price puts your housing payment at $1,983 a month, right at your front-end limit.
Principal, interest, taxes, insurance, HOA, and PMI combined.
Your income caps you before your other debts do.
28% of gross monthly income.
43% of income, less your $450 of other debt.
Below 20%, so PMI is included in the payment above.
Estimates only, for education. This is the ratio math a lender runs, but a real approval also weighs credit score, employment history, reserves, and the loan program. Get a pre-approval before you shop. Comfortable and approvable are not the same number, and buying at your ceiling leaves no room for repairs.
What the numbers mean
The binding limit tells you where to put your energy. If the back-end ratio is what caps you, your other debts are the problem, and paying off a car loan will raise your budget faster than saving another few thousand for the down payment. If the front-end ratio caps you, income is the constraint and no amount of debt payoff will move it.
Property tax is the sleeper variable. Two identical homes at the same price in different counties can differ by several hundred dollars a month once taxes are in the payment, which changes your maximum price by tens of thousands. Look up the actual rate for the county you are shopping rather than accepting a default.
Approved is not the same as comfortable. Once you know your ceiling, the useful next question is whether the property can help carry itself. See the house hacking calculator for what happens when a tenant covers part of the payment, or FHA vs conventional for how the loan choice changes your down payment. Still deciding whether to buy at all? Run the rent vs buy calculator. And before you shop, read how pre-approval actually works.
Affordability questions
How much house can I afford on my salary?
Lenders do not use a salary multiple. They use two debt-to-income ratios: your housing payment as a share of gross monthly income (front-end, classically 28%), and your housing payment plus every other debt payment (back-end, often 43% and sometimes up to 50%). Whichever ratio you hit first sets your ceiling. This calculator runs both and tells you which one binds.
What is the 28/36 rule?
It is the conservative version of the two ratios above: keep housing at or under 28% of gross income and total debt at or under 36%. Many modern loan programs allow considerably more than 36% on the back end, which is why this calculator defaults to 43%. Being approved for more does not mean you should borrow more.
Do other debts really reduce how much house I can buy?
Substantially. Every dollar of monthly debt payment comes straight out of your back-end ceiling. A $450 car payment can cut your maximum purchase price by roughly $60,000 to $75,000 at typical rates. Paying off a car loan before applying is often the fastest way to raise your budget.
Why is my payment higher than just principal and interest?
The ratio lenders test is the full housing payment: principal, interest, property taxes, homeowners insurance, HOA dues, and mortgage insurance if you put less than 20% down. Property tax alone varies from under 0.5% to over 2% of value per year depending on where you buy, which can shift your maximum price by six figures.
Should I buy at the top of what I am approved for?
Usually not. The approval ceiling is what a lender will risk, not what leaves you room for a roof replacement, a job change, or a rate reset. Buying meaningfully under your maximum is what keeps a home from becoming a source of stress, and it is what makes a future investment purchase possible.
Know your number. Now know the order.
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