How Much House Can I Afford?
A common guideline is to keep housing costs under 28% of gross monthly income. Adjust the price below until the payment fits your budget.
| Component | Monthly |
|---|---|
| Principal & interest | — |
| Property tax | — |
| Home insurance | — |
The 28% rule
Many lenders suggest spending no more than 28% of your gross monthly income on housing (the "front-end ratio"). For example, if you earn $7,000 per month, a comfortable housing payment would be around $1,960. Adjust the home price in the calculator until the monthly payment lands near your target.
What affects affordability
Beyond income, your down payment, interest rate, existing debts, and property taxes all shape what you can afford. A larger down payment lowers both the loan amount and the monthly payment, while a higher rate reduces the price you can comfortably carry.
Work backward from a comfortable payment
Rather than starting with a home price, start with the monthly payment you're comfortable with and adjust the price field until the calculator matches it. That keeps your budget — not the listing price — in the driver's seat.