How Much House Can I Afford?
Find your maximum home purchase price based on your household income, monthly debt obligations, down payment, and DTI limits.
Financial Overview
Estimated max budget based on standard limits
Mortgage Affordability Calculator
Before you fall in love with a home, find out what you can actually afford. CalQora's mortgage affordability calculator uses your income, debts, and down payment to show you a realistic home price range in seconds.
How Lenders Determine How Much You Can Borrow
Lenders use debt-to-income (DTI) ratios to decide the maximum mortgage amount you qualify for. The standard baseline is the 28/36 rule:
- Front-End Ratio (28%): Your total monthly housing payment (PITI) shouldn't exceed 28% of your gross monthly income.
- Back-End Ratio (36%): Your total debt payments (housing + student loans + car payments + minimum credit card debt) shouldn't exceed 36% of your gross monthly income.
Frequently Asked Questions
What is the 28/36 rule in mortgage lending?
The 28/36 rule suggests spending no more than 28% of your gross monthly income on housing costs, and no more than 36% on total debt payments combined.
Can I afford a house if I have existing debt?
Yes, but existing debts (car loans, student loans, credit cards) lower the maximum housing payment lenders will approve.
How does my down payment affect how much house I can afford?
A larger down payment increases your maximum purchase budget directly dollar-for-dollar and reduces loan interest costs.