How Much House Can I Afford?
Turn your income, debts, and down payment into a realistic maximum home price using the 28/36 lender rule and today's mortgage rate — with a full monthly-payment breakdown.
A $90,000 income with $40,000 down supports roughly $299,631 of home at the current 6.7% 30-year rate (Freddie Mac, as of Q2 2026).
$299,631
Max home price on $90,000 income, $40,000 down, at 6.7%
28 / 36
The lender ratios that cap housing and total-debt payments
6.7% rate
30-yr fixed mortgage, Freddie Mac as of Q2 2026 (FRED) — live default
What decides how much house you can afford
Two lender ratios, today's mortgage rate, and the full cost of ownership.
Lenders cap two ratios
Your housing payment is limited to about 28% of gross income, and all your debt payments together to about 36%. Whichever ratio you hit first sets your ceiling — high existing debt pulls the limit down.
Today's rate sets your reach
The mortgage rate decides how much loan a given payment buys. The calculator opens with the live 6.7% 30-year fixed rate (Freddie Mac, Q2 2026) and you can dial it up or down to see the effect on your max price.
Payments are more than principal
Property tax, homeowner's insurance, and any HOA dues share your monthly budget with principal and interest. Folding them in gives a price you can actually carry, not just qualify for.
How the Affordability Calculator Works
Formula
monthlyIncome = annualIncome ÷ 12
frontCap = monthlyIncome × 28%
backCap = monthlyIncome × 36% − monthlyDebts
housingBudget = max(0, min(frontCap, backCap))
available = housingBudget − insurance/12 − HOA
P&I factor = r ÷ (1 − (1+r)^−n) (r = monthly rate, n = months)
maxHomePrice = (available + downPayment × factor) ÷ (factor + taxRate/12)
loanAmount = maxHomePrice − downPaymentEnter income and debts
Gross annual income and your existing monthly debt payments.
Add your down payment
Cash you will put toward the purchase.
Set the mortgage rate
Opens at the live 6.7% 30-year fixed rate — adjust to compare.
Include ownership costs
Property tax rate, insurance, and any HOA dues.
Review your max price
See the home price, loan, and monthly payment the ratios allow.
The maximum home price is solved directly: your housing budget is the lower of the two lender ratios, and the price follows once property tax is treated as a share of value. The result is the most home your income and rate support — lenders may approve less based on credit, reserves, and other factors.
The mortgage rate default is the Freddie Mac 30-year fixed average, 6.7% as of Q2 2026 (source: FRED, last refreshed 2026-06-08). It is editable, so you can model a rate lock or a what-if scenario.
Frequently Asked Questions
Related Calculators
Go deeper on the mortgage, down payment, and the ratios behind approval.