How much house can I afford?

Lenders apply two limits: your housing costs (principal, interest, tax, insurance) should not exceed 28% of your gross monthly income, and your total debt payments (housing plus car loans, student loans, credit cards, etc.) should not exceed 36%. Most conventional US lenders use these as their primary qualification thresholds.

Any recurring minimum payment you owe each month: car payments, student loan minimums, credit card minimum payments, personal loan payments, child support or alimony. Do not include utilities, subscriptions, groceries, or the new mortgage itself — those are already in the housing-cost calculation.

The calculator finds the maximum monthly housing payment allowed under the 28% front-end limit and the 36% back-end limit (after subtracting your existing debts). It takes the lower of the two, then works backwards through the mortgage formula — factoring in your down payment, interest rate, and estimated taxes and insurance — to arrive at a purchase price.

Conservative (80% of the maximum) keeps you well inside guideline limits and leaves room for unexpected costs. Moderate (90%) is a comfortable balance. Stretch (100%) is the lender's ceiling — technically approvable but leaves little financial cushion. Most financial planners recommend buying at the Conservative or Moderate tier.

It applies the same 28/36 framework most US lenders use, but every lender has its own underwriting criteria. FHA, VA, jumbo, and portfolio loans all have different limits. Use this as a starting budget before talking to a lender — not as a substitute for a pre-approval letter.