Home Affordability Calculator 2026

Calculate how much house you can afford based on your income, debts, and down payment. Uses the 28/36 rule for accurate affordability estimates.

Home Affordability Calculator

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Max Home Price

$326,868.93

Based on your finances

Monthly Payment (PITI)

$2,158.59

Loan Amount

$276,868.93

Down Payment %

15.3%

Monthly P&I

$1,750.00

Property Tax (monthly)

$326.87

PMI (if applicable)

$115.36

How Calculated

Gross Monthly Income$8,333.33
Max Housing Payment (28%)2333.3%
Available After Debts$2,500.00
Existing Monthly Debts$500.00
HOA Fees$0.00
Tips
  • • The 28/36 rule is a guideline - lenders may approve higher ratios, but you'll have less financial flexibility
  • • Budget 1-2% of home value annually for maintenance and repairs

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How Much House Can You Afford in 2026?

Buying a home is likely the largest purchase you'll ever make, and determining how much you can afford is crucial to making a smart decision. Our home affordability calculator uses proven financial guidelines to help you understand your price range, ensuring you don't overextend your budget while still finding a home that meets your needs.

The 28/36 Rule: A Time-Tested Guideline

Lenders and financial advisors use the 28/36 rule as a benchmark for housing affordability. This guideline suggests that you should spend no more than 28% of your gross monthly income on housing expenses and no more than 36% on total debt payments (including housing). This rule helps ensure you can comfortably afford your mortgage while managing other financial obligations.

The 28/36 Rule Explained

Front-End Ratio (Housing)≤ 28% of gross income
Back-End Ratio (Total Debt)≤ 36% of gross income

Example: With $8,000/month gross income, your housing payment should not exceed $2,240/month, and total debt payments should stay under $2,880/month.

What's Included in Monthly Housing Costs?

Your monthly housing payment (PITI) includes more than just the mortgage principal and interest. Lenders consider all of these components when calculating affordability:

PITI: Components of Your Monthly Payment

PrincipalLoan repayment amount
InterestCost of borrowing
TaxesProperty taxes (1-2% annually)
InsuranceHomeowners insurance
+ PMI (if applicable)0.5-1.5% annually

How Down Payment Affects Affordability

Your down payment significantly impacts how much home you can afford. A larger down payment reduces your loan amount, monthly payment, and total interest paid. It also affects whether you'll pay private mortgage insurance (PMI), which is required when putting down less than 20%.

Down Payment Impact on $400,000 Home

3% Down ($12,000)$388,000 loan + PMI ~$160/mo
5% Down ($20,000)$380,000 loan + PMI ~$126/mo
10% Down ($40,000)$360,000 loan + PMI ~$75/mo
20% Down ($80,000)$320,000 loan, NO PMI

2026 Mortgage Rates and Their Impact

Interest rates dramatically affect your purchasing power. A 1% difference in rates can change your affordable home price by 10-15%. As of 2026, mortgage rates remain elevated compared to historic lows, making it essential to factor current rates into your calculations.

Monthly Payment on $350,000 Loan (30-Year Fixed)

5.5% Interest Rate$1,987/month
6.5% Interest Rate$2,212/month (+$225)
7.5% Interest Rate$2,447/month (+$460)

💡 Pro Tip: Get Pre-Approved Before House Hunting

A mortgage pre-approval gives you a clearer picture of what lenders think you can afford and shows sellers you're a serious buyer. Use our calculator first to set expectations, then get pre-approved to confirm your budget. Check our Mortgage Calculator to estimate monthly payments on specific homes.

Debt-to-Income Ratio: What Lenders Look For

Your debt-to-income (DTI) ratio is a key factor in mortgage approval. It compares your monthly debt payments to your gross monthly income. Lower DTI ratios mean more borrowing capacity and better loan terms.

  • Conventional loans: Maximum DTI of 43-50%, depending on credit score and reserves
  • FHA loans: Maximum DTI of 43-57% with compensating factors
  • VA loans: No hard limit, but lenders prefer DTI under 41%
  • USDA loans: Maximum DTI of 41-44%

Other Costs to Consider When Buying a Home

Beyond the mortgage payment, homeownership comes with additional costs that affect affordability:

  • Closing costs: 2-5% of home price ($6,000-$15,000 on a $300,000 home)
  • HOA fees: $200-$500+/month in some communities
  • Maintenance: Budget 1-2% of home value annually for repairs
  • Utilities: Often higher in larger homes; budget $200-$500/month
  • Moving expenses: $1,000-$5,000+ depending on distance
  • Furnishing: Budget 10-20% of home price for furniture and appliances

Frequently Asked Questions

A general rule is you can afford a home that costs 2.5 to 4 times your annual salary. With a $100,000 salary, that's roughly $250,000-$400,000. However, your specific situation depends on your debt, down payment, credit score, and current interest rates. Use our calculator for a personalized estimate.
Minimum credit scores vary by loan type: 620 for conventional loans, 580 for FHA loans (500 with 10% down), and no minimum for VA loans (though lenders typically require 620). Higher credit scores (740+) qualify for the best interest rates, significantly improving affordability.
Generally, no. Buying at the top of your approved range leaves no buffer for unexpected expenses, job changes, or income fluctuations. Consider buying below your maximum to maintain financial flexibility and build an emergency fund for homeownership costs.
Student loans affect your DTI ratio, which impacts how much you can borrow. Lenders typically use 0.5-1% of your loan balance or the actual payment amount when calculating DTI. Income-driven repayment plans can help by showing a lower monthly obligation.
Yes, many people buy homes on a single income. The key is to focus on homes well within your budget, maintain an emergency fund covering 6+ months of expenses, and consider buying a smaller home or in a more affordable area. A smaller down payment requirement like 3-5% can also make homeownership more accessible.