How Much House Can I Afford?
Estimate the home price you can afford from your income, debts and down payment.
How the estimate works
We use the common 36% rule: your total monthly debt, including the new housing payment, should stay under 36% of gross income. The housing budget is what is left after your other debts. We then solve for the price whose mortgage plus tax and insurance fits that budget.
Do not stretch
Lenders may approve more than is comfortable. Leave room for repairs, utilities and savings, and keep an emergency fund after closing costs.
Worked example
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Add closing costs of 2-5% of the price to your cash needs.
- A larger down payment raises what you can afford.
- Improve your credit score before applying.
Learn more
Frequently asked questions
Is 36% a hard limit?
No, it is a guide. Some lenders go higher, but it is safer to stay near it.
Does it include PMI?
No. If you put down less than 20% add PMI to your costs.
Which taxes are included?
The tax and insurance percentage you enter.
Money guides for this topic
All guides →Buying a Home or Car: The Math Before You Sign
How to work out what you can really afford for a home or car, using simple rules and real numbers.
Read guide →How Much House Can I Afford? The 28/36 Rule
A simple rule lenders use to size a mortgage, with a worked example, plus the costs people forget when they set a budget.
Read guide →How Loan Interest Really Works
Understand APR, amortization and why early payments are mostly interest, with tips to pay less.
Read guide →Related calculators
Mortgage Calculator
Estimate your full monthly mortgage payment including property tax and home insurance.
Open calculator →Refinance Break-Even Calculator
See if refinancing a loan saves money and how many months it takes to break even.
Open calculator →Down Payment Savings Calculator
Find how long it will take to save the down payment for a home.
Open calculator →Results are estimates and not financial advice.