🏡 Home Affordability Calculator
How much house can you actually afford?
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The 28/36 Rule
Lenders use two ratios: the front-end ratio (28%) limits housing costs to 28% of gross monthly income. The back-end ratio (36%) limits total debt payments (housing plus all other debt) to 36% of gross income. On an $85,000 income, that means max housing payment of $1,983/month and max total debt of $2,550/month. If you already have $500/month in other debt, your max housing payment drops to $2,050.
These are maximums, not targets. Financial advisors recommend spending 20-25% of gross income on housing for financial flexibility. At 28%, you can afford the house but may feel stretched. At 20%, you have breathing room for savings, emergencies, and lifestyle.