How the home affordability calculator works
Checked Oct 24, 2026
The highest price whose full monthly payment fits the 28/36 rule: housing at most 28% of gross monthly pay, and housing plus other debt payments at most 36%.
Open the home affordability calculator
Step by step
1. The limit
Gross yearly income over 12, times 28%, is the housing limit. Times 36%, less your other monthly debt payments, is the total limit. The lower of the two is what housing may cost.
2. The payment
For a price, the loan is the price less your down payment. The payment is principal and interest on it over the term, plus property tax as a percent of the price, insurance, HOA dues, and PMI while the loan is above 80% of the price.
3. The price
The calculator searches for the highest price, to the nearest $1,000, whose payment fits the limit. The stretch figure does the same with housing at 36% of pay.
Figures used
- Housing limit
- 28% of gross monthly pay
- Housing and debt limit
- 36% of gross monthly pay
- PMI while the loan is above
- 80% of the price
Assumed
- A fixed-rate loan.
- Property tax and insurance at today’s rates.
Not modeled
- Closing costs, moving and repairs.
- Lender rules beyond 28/36: credit score, loan limits, FHA or VA loans.
- Your savings after the down payment.
Sources
These are estimates for education, not tax or investment advice. If a number looks wrong, report a problem with this calculation and say what you entered.