Mortgages
Home Affordability Calculator
How much house can you actually afford? This calculator applies the same debt-to-income rules lenders use — housing costs under 28% of gross income, total debts under 36% — to turn your income, monthly debts, and down payment into a realistic maximum price, with the full payment breakdown at that price.
Car loans, student loans, card minimums — not rent or utilities.
US average is about 1.1% of home value; varies widely by state.
You can afford a home up to
$359,750
- Monthly housing budget
- $2,566.67
- Loan amount
- $309,750
- Principal & interest
- $1,957.83
- Property tax
- $329.77
- PMI (down payment under 20%)
- $129.06
- Binding constraint
- 28
The 28% housing-cost rule is what limits you.
How this calculator works
We compute your monthly budget as the lesser of 28% of gross monthly income and 36% minus existing debts, then solve in closed form for the price whose full carrying cost (principal & interest at your rate, property tax as a percentage of price, insurance, and PMI when the down payment is under 20%) exactly consumes that budget.
Estimates assume a fixed-rate loan and exclude HOA dues, mortgage insurance variations, and lender overlays. Your actual approval depends on credit score, reserves, and full underwriting.
Try an example
Frequently asked questions
What is the 28/36 rule?
A lending guideline: housing costs (payment, taxes, insurance) should stay under 28% of gross monthly income, and ALL debt payments combined under 36%. Whichever cap you hit first sets your budget — this calculator shows which one binds for you.
How much income do I need for a $400,000 house?
At 6.5% with 20% down and typical taxes and insurance, a $400,000 home costs roughly $2,570 a month — which the 28% rule supports at about $110,000 of gross annual income with modest other debts. Set the price backwards using your own rate and down payment above.
Does a bigger down payment let me afford more house?
Twice over: every extra dollar adds directly to the price you can pay, and crossing 20% down removes PMI, freeing $100–300 a month of budget to cover more mortgage instead of insurance for the lender.
Do lenders actually use these ratios?
Conventional underwriting still anchors near them, though approvals can stretch higher (FHA loans commonly allow back-end ratios into the mid-40s). Being approvable isn't the same as being comfortable — many planners suggest staying below what the ratios allow, not above.
What monthly debts count against me?
Recurring credit obligations: car payments, student loans, personal loans, and credit-card minimums. Utilities, groceries, insurance, phone plans, and subscriptions don't count in DTI — lenders assume those come out of what's left.
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Debt Payoff Calculator — Snowball vs Avalanche
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.