Home Affordability Calculator 2026: How Much House Can You Afford?
The 28/36 rule is the standard lenders use to determine how much house you can afford. This guide explains how to calculate your home buying budget, the factors that affect affordability, and strategies to increase your purchasing power.
Introduction
Buying a home is one of the biggest financial decisions you'll ever make. Knowing exactly how much house you can afford — before you start touring properties — saves time, prevents disappointment, and helps you make an offer with confidence.
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Open Home Affordability CalculatorUnderstanding the 28/36 Rule
The 28/36 rule is a standard lending guideline used by most conventional mortgage lenders:
- 28% Front-End Ratio: Your monthly housing costs (principal, interest, property taxes, insurance) should not exceed 28% of your gross monthly income.
- 36% Back-End Ratio: Your total monthly debt payments (housing + car loans, student loans, credit cards) should not exceed 36% of your gross monthly income.
The calculator uses the more restrictive of these two limits to determine your affordable home price.
Affordability Examples for 2026
With 2026 interest rates around 6.5% for a 30-year fixed mortgage:
| Annual Income | Down Payment | Monthly Debts | Max Home Price |
|---|---|---|---|
| $75,000 | 20% | $500 | ~$245,000 |
| $100,000 | 20% | $500 | ~$355,000 |
| $150,000 | 20% | $800 | ~$530,000 |
| $200,000 | 20% | $1,000 | ~$710,000 |
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Run your own affordability numbers with our free calculator.
Open Home Affordability Calculator7 Factors That Affect Your Home Affordability
- Interest Rates. A 1% rate change affects affordability by ~10%. At 6.5% vs 7.5%, you can afford about $40,000 less house on a $100k income.
- Down Payment. 20% down eliminates PMI and reduces monthly payments. FHA loans allow as little as 3.5% down but require MIP.
- Credit Score. Scores above 740 qualify for the best rates. A 100-point difference can change your rate by 0.5-1%.
- Debt-to-Income Ratio. Lower existing debts mean more room for a mortgage payment.
- Property Taxes. Rates vary by county from 0.5% to 2.5% of home value.
- Homeowners Insurance. Coastal areas and older homes cost more to insure.
- HOA Fees. Can range from $50/month for basic maintenance to $500+/month for luxury amenities.
Frequently Asked Questions
Should I use the 28/36 rule or can I go higher?
The 28/36 rule is conservative. FHA allows 31/43, some lenders go to 50% with strong credit. Staying within 28/36 provides financial flexibility.
How does the down payment affect affordability?
20% down eliminates PMI saving $200-$300/month. Less than 20% down helps enter the market sooner.
Does this include homeowners insurance and HOA fees?
No — insurance ($100-$200/month) and HOA ($50-$500/month) should be added separately.