Find out how much house you can afford from your income, debts, down payment and today’s mortgage rates. With a $100,000 household income, $500 of monthly debts and $60,000 down, the 28/36 rule points to a home of about $322,900 at the 7.40% average 30-year rate.
Home Affordability Calculator
How much house you can afford with the 28/36 rule · Updated October 12, 2026
- Loan amount
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- Monthly housing payment
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- Principal and interest
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- Taxes, insurance, PMI and HOA
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- Stretch price (43% total debt-to-income)
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Uses the 28/36 guideline: housing up to 28% of gross monthly income and all debts up to 36%. PMI of 0.5% a year is added when the down payment is under 20%.
The 28/36 rule
- 28%: your monthly housing payment (principal, interest, property tax, insurance, PMI and HOA) should be no more than 28% of your gross monthly income.
- 36%: all your monthly debt payments, including the new mortgage, should be no more than 36% of gross income.
- Lenders may approve higher ratios. Many loans allow a total debt-to-income ratio of 43% or more with strong credit, which is why the calculator also shows a stretch price.
The calculator takes the lower of the two limits, then works backwards to the price where the full payment fits, adding PMI when the down payment is under 20%.
How income and rates change your budget
| Household income | Max housing payment | Price at 6.00% | Price at 7.40% |
|---|---|---|---|
| $60,000 | $1,300 | $229,070 | $209,869 |
| $80,000 | $1,867 | $300,000 | $279,196 |
| $100,000 | $2,333 | $354,738 | $322,888 |
| $150,000 | $3,500 | $507,001 | $458,698 |
| $200,000 | $4,667 | $659,264 | $594,507 |
A lower rate stretches the same payment further: at 6.00% instead of 7.40%, a $100,000 income supports a home roughly $31,900 more expensive. At $60,000 the 36% limit is the tighter one, because $500 of other debt eats into it.
FAQ
Should I borrow the maximum?
Not necessarily. The guideline doesn't include childcare, savings goals or repairs. Many buyers aim below the maximum so they keep an emergency fund and money for maintenance, often 1% to 2% of the home's value a year.
What counts as debt?
Minimum payments on credit cards, car loans, student loans, personal loans and child support count. Utilities, phone bills and groceries don't, though they still matter for your budget.
Related calculators
Sources
- Consumer Financial Protection Bureau: What is a debt-to-income ratio?
- Freddie Mac Primary Mortgage Market Survey: Mortgage rates average 7.40% · October 8, 2026
Figures current as of October 12, 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
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