The 28/36 rule
Many US lenders like housing costs (mortgage, property tax, insurance) under 28% of gross income, and total debt payments under 36%. You can change both limits in the calculator to match a lender or your own comfort level.
How Much House Can I Afford?
See the home price you could afford from your income, debts, deposit and mortgage rate.
- 100% free
- Uses lender ratios
- Includes tax and insurance
You could afford a home of about
$307,823.74
Limited by your income
- Loan amount
- $267,823.74
- 13.0% down
- Monthly payment
- $2,100.00
- Loan, property tax and insurance
- Loan payment
- $1,692.83
- Principal and interest
- Loan-to-income
- 3.0×
- Many UK lenders cap around 4.5×
Calculation
Housing ≤ 28% of monthly income, and housing + debts ≤ 36%
- Housing budget: $2,100.00 a month
A guide using common lender ratios (28% / 36% in the US). Lenders also look at your credit, savings and local rules — and the most you can borrow isn't always what's comfortable to repay.
Last reviewed by the OnlineToolPro team
What is the How Much House Can I Afford??
Estimates the most expensive home you could afford using the debt-to-income ratios lenders commonly use: housing costs within about 28% of income, and all debts within about 36%. It includes property tax and insurance, and shows your loan-to-income multiple.
How it works
How to use the How Much House Can I Afford?
3 simple steps. No experience needed.
What can you use it for?
- Set a realistic budget before house hunting.
- See how a bigger deposit or lower rate changes your budget.
- Check whether paying off a car loan first helps.
Good to know
FAQ
Frequently asked questions
How much house can I afford on my salary?
A common rule is that housing costs shouldn't exceed about 28% of your gross monthly income, and all debts about 36%. On $90,000 a year with few debts, that's roughly $2,100 a month for housing.
How do UK and Australian lenders decide?
Many UK lenders cap borrowing at around 4.5 times income, and Australian lenders assess “serviceability” with a rate buffer. The calculator shows your loan-to-income multiple so you can compare.
Should I borrow the maximum?
Not necessarily. The maximum assumes nothing changes; leaving room in your budget protects you if rates or costs rise.
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