How Much House Can I Afford?
Enter your income, existing debts, and down payment to see the maximum home price and mortgage that standard lending guidelines suggest you can handle.
Qualifying ratios
Bars show % of gross monthly income. Green = within guideline, amber = approaching limit.
The 28/36 rule explained
Lenders use debt-to-income (DTI) ratios to measure whether you can comfortably afford a loan. Two ratios matter:
- Front-end ratio (housing ratio): your total monthly housing cost (mortgage, interest, property taxes, insurance) should be no more than 28% of your gross monthly income.
- Back-end ratio (total DTI): all monthly debt payments — housing plus car, student, credit card minimums — should be no more than 36%.
The maximum you can borrow is constrained by whichever limit is tighter for your situation. This calculator tests both and returns the lower result.
How to increase your affordability
- Pay down debts: reducing your back-end ratio often frees up more room than increasing income.
- Grow your down payment: a bigger deposit lowers the loan size you need and may unlock lower rates.
- Improve your credit: a better credit score typically means a lower interest rate, which directly raises the loan amount you qualify for at the same monthly payment.
- Extend the term: a 30-year loan has a lower monthly payment than a 15-year loan on the same principal, so you can afford a larger loan — but you'll pay much more interest over time.
Frequently asked questions
How do lenders decide how much to lend me?
Most lenders use two income ratios. The front-end ratio limits your total housing payment (mortgage, insurance, property tax) to roughly 28% of gross monthly income. The back-end ratio limits all monthly debt payments (housing + car + student loans + credit cards) to roughly 36%. Some lenders go higher — up to 43% or even 50% — but 28/36 is a safe, conservative rule.
What counts as a monthly debt payment?
Include minimum payments on credit cards, car loans, student loans, and any other personal loans. Don't include utilities, groceries, or subscriptions — those aren't 'debt' in a lender's eyes.
Does this include property taxes and insurance?
For simplicity this calculator focuses on the mortgage payment (principal + interest) only and compares it to the 28% front-end ratio. Real lenders include estimated property taxes and home insurance in that cap, so your actual maximum loan may be slightly lower.
How much should I put as a down payment?
A conventional loan typically requires 20% to avoid private mortgage insurance (PMI). You can put down as little as 3–5% with FHA or certain conventional loans, but you'll pay PMI, which adds to your monthly costs and reduces how much you can borrow.
Why might my actual approval differ from this estimate?
Lenders also consider your credit score, employment history, cash reserves, and the specific loan program. This calculator gives a useful ballpark figure based on income and debt ratios only.
CalcOrchard is a free educational tool. The estimate is based on standard 28/36 debt-to-income guidelines and does not account for property taxes, insurance, PMI, or lender-specific criteria. This is not financial or legal advice.