Equidwell

How Much House Can You Afford?

This works backward from income and the debts you already pay. The 28/36 split is a teaching rule. A lender can, and often does, use a different one.

Written for Equidwell and last checked in October 2026. We build the calculators on this site. We are not a lender, and this page is not advice for your loan.

How this calculator works

  1. Front-end maximum is 28% of gross monthly income.
  2. Back-end maximum is 36% of gross monthly income minus the monthly debts you enter.
  3. The calculator uses the lower of those two amounts.
  4. It then solves for a home price after the tax rate, insurance estimate, and PMI assumption.

Why debt can matter more than income

Same salary, different house. A car payment, a student loan, or a card minimum eats the 36% room before the mortgage is even added.

If debts are the tighter limit, the result says so. If they already use up the 36% guideline, the estimated housing payment is zero. That is the math running out of room, not a lender telling you no.

Sources

Common questions

Will a lender approve this price?

Not necessarily. Credit, reserves, loan type, and the lender's own ratios can all differ from 28/36.

Are taxes and insurance included?

Yes. The tax field is a rate you should replace with the local rate, and insurance is an annual dollar estimate.

Does a down payment under 20% change the price?

In this model, yes. PMI is estimated at 0.50% of the loan per year, which uses part of the housing payment and lowers the price.

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  • Down Payment Calculator

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Longer guides on these topics are linked from the guides library.

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