Enter income, monthly debts, and down payment to estimate a home price range using common lender guidelines.
Enter income, monthly debts, and down payment to estimate a home price range using common lender guidelines.
Standard Rule Max Home Price
$230,430.60
Housing budget about $1,400.00/month after debts
28/36 rule estimate
Next: estimate the monthly payment and cash needed at closing for your target price.
28/36 estimate ($230,430.60) vs 3x income shortcut ($180,000.00)—compare both before setting a search range.
28/36 Rule
Standard lender affordability check.
3x Income Rule
Fast estimate before debt checks.
43% DTI Rule
Upper lender limit with less cushion.
28/36 Rule
Standard lender affordability check.
3x Income Rule
Fast estimate before debt checks.
43% DTI Rule
Upper lender limit with less cushion.
This calculator estimates your realistic home price range from your income, monthly debts, and down payment. With gross income it applies the 28/36 rule that many lenders use: your housing payment should stay under about 28% of gross monthly income, and all debt payments combined (housing plus car loans, student loans, credit card minimums) under about 36%. It then works backward from that maximum payment — using your interest rate, term, and down payment — to a price.
With take-home income, the calculator applies a more conservative personal-budget rule instead, because the lender-style limits are calculated before taxes and can approve payments that feel suffocating in real life. Running both views is the point: the gap between "what a lender might approve" and "what leaves room to live" is often tens of thousands of dollars of house.
Remember that the mortgage payment is not the whole cost of owning. Property taxes, homeowners insurance, possible PMI (typically required below 20% down), HOA dues, and maintenance add hundreds per month. Buying below your maximum approval is the single most reliable way to keep a home from becoming a source of stress.
Example: $75,000 gross income ($6,250/month), $400 in existing debt payments, 6.5% rate, 30-year term, and $30,000 down. The 28/36 rule might support roughly $1,750/month in housing and a price near $280,000 — but the 25% take-home rule on $4,700 net pay might cap housing closer to $1,175. That gap is why both views matter.
A lending guideline: spend no more than 28% of gross monthly income on housing, and no more than 36% on all debt payments combined. Lenders use ratios like these to size the mortgage they will approve.
You do not need 20%. Conventional loans can go as low as 3% down and FHA loans 3.5%, though below 20% you will usually pay private mortgage insurance (PMI). A larger down payment lowers your monthly payment and total interest.
Lenders look at your debt-to-income ratio across everything you owe monthly — car loans, student loans, credit card minimums. Each $100 of existing monthly debt payments reduces the mortgage payment you qualify for by roughly the same amount, which can cut your price range by $15,000–$20,000.
Usually not. Approval is based on gross income and ignores your actual life — childcare, savings goals, commuting, hobbies. Many comfortable homeowners buy 10–20% below their maximum approval to keep breathing room for everything else.
Lenders use credit scores, assets, loan type, and local rules this tool cannot see. It also does not include property taxes, insurance, PMI, or maintenance unless you model them elsewhere. Treat the result as a planning range, not an approval letter.