Home Affordability Calculator
How much house can you afford? Enter your income, debts, down payment and rate to see the home price, the monthly payment and the cash you need upfront.
For a joint purchase. Lenders add both incomes together.
Car, student and personal loans, card minimums. Not rent or bills.
Housing costs stay under the first share of gross monthly income; housing plus debts under the second. These are rules of thumb, not any lender's rule. Leave the housing limit blank to use only the total.
Many UK lenders lend around 4 to 4.5 times income (a typical figure, not a rule). Yearly debt payments are taken off the income first.
Everything included: loan, property tax, insurance, HOA and mortgage insurance.
US lenders usually ask for PMI when you put down less than 20% (loan above 80%).
Legal fees, lender fees, transfer or stamp duty. 2–5% is a common guess; check your country's taxes.
Moving, repairs, furniture.
How the price changes with the rate, and each method side by side
| Rate | Home price | Loan | A month |
|---|
| Method | Home price | A month |
|---|
How your home budget is worked out
The most you can pay a month, turned into a loan, plus your down payment.
- 1
Monthly income
$90,000 ÷ 12= $7,500
- 2
Housing limit
28% = $2,10036% − debts = $2,200Lower: $2,100
- 3
Loan it carries
$2,100 a month6.5%, 360 months= $332,243 loan
- 4
Home price
$332,243 loan+ $60,000 down= $392,243
Read more: the formula, a worked example, rules of thumb and upfront costs
Lenders and money guides look at what you can pay each month, not just the price. This calculator finds the most you can spend a month on the home, works out the loan that payment repays over your term, then adds your down payment to get the price.
The formula
monthly income = yearly income ÷ 12
housing limit = the lower of (housing % × monthly income) and (all-debts % × monthly income − monthly debts)
loan = (housing limit − tax − insurance − HOA − PMI) × (1 − (1 + monthly rate)^−months) ÷ monthly rate
home price = loan + down payment
income multiple: loan = (yearly income − yearly debt payments) × multiple
Worked example
You earn $90,000 a year, pay $500 a month on other debts, have $60,000 for a down payment and can get 6.5% over 30 years. Monthly income is $90,000 ÷ 12 = $7,500. The housing limit is 28% × $7,500 = $2,100, and the total limit is 36% × $7,500 − $500 = $2,200, so the lower one, $2,100, sets the budget. The monthly rate is 6.5 ÷ 12 ÷ 100 = 0.0054167, and (1.0054167)360 = 6.9918, so the loan $2,100 repays is $2,100 × (1 − 1 ÷ 6.9918) ÷ 0.0054167 = $332,243. Add the $60,000 down payment and you can afford a home of about $392,243. Closing costs at 3% are $11,767, so you need $71,767 in cash. Your total debts come to ($2,100 + $500) ÷ $7,500 = 34.7% of income.
With the stretch limits (36% / 43%), the housing limit rises to $2,700 and the price to about $487,169. With an income multiple of 4.5, the loan is ($90,000 − $6,000) × 4.5 = $378,000 and the price $438,000, with a repayment of $2,389 a month.
Rules of thumb
| Rule | Housing | All debts | Notes |
|---|---|---|---|
| Careful | 25% | 33% | Leaves room for saving and surprises. |
| Standard 28/36 | 28% | 36% | The best-known rule of thumb, widely quoted in the US. |
| Stretch | 31% | 43% | Close to the upper limits many US lenders use. |
| Income multiple | about 4–4.5 × income | Typical for UK lenders; some go higher for high earners. | |
Lenders in each country set their own limits, and many also stress-test you at a higher rate. Use these figures as a guide, then ask a lender or broker for a decision in principle.
Comfortable vs stretch
The comfortable figure uses the limits you chose. The stretch figure adds 8 points to the housing limit and 7 to the total limit (28/36 becomes 36/43), adds 1 to an income multiple, or allows 20% more than your monthly budget. A stretch budget leaves less for savings, repairs and rate rises.
Cash you need upfront
- Down payment (deposit): many lenders want at least 5–20% of the price, depending on the country and loan.
- Closing costs: legal and lender fees, valuation, and taxes on buying, such as stamp duty or transfer fees. These can be large in some countries, so check your local rates.
- An emergency fund: keep a few months of costs aside after buying.
These are rules of thumb, not lending rules for any country. Lenders also look at your credit history, job, other income and a stress-test rate. Assumes a fixed rate and level monthly repayments for the whole term. Checked on 10 October 2026.
Common questions
How much house can I afford on my salary?
A common guide is the 28/36 rule: housing costs under 28% of your income before tax, and all debts under 36%. On $90,000 a year with $500 a month of other debts, $60,000 down and a 6.5% rate over 30 years, that is a home of about $392,243. Lenders also look at your credit history, job and a stress-test rate.
What is the 28/36 rule?
It says your housing costs, meaning the mortgage, property tax, insurance and any HOA fee, should stay under 28% of your monthly income before tax, and all your debt payments together under 36%. It is the best-known rule of thumb, widely quoted in the US. Lenders in each country set their own limits.
How many times my income can I borrow?
Many UK lenders lend about 4 to 4.5 times your income, and some go higher for high earners. On $90,000 a year with $6,000 a year of other debt payments, a multiple of 4.5 gives a loan of ($90,000 − $6,000) × 4.5 = $378,000. Add your down payment to get the home price.
How much cash do I need to buy a house?
You need the down payment, which many lenders want at 5–20% of the price, plus closing costs such as legal and lender fees, a valuation and taxes on buying. In the example, a $60,000 down payment plus 3% closing costs of $11,767 means $71,767 in cash. Keep an emergency fund of a few months of costs aside too.
What is the difference between the comfortable and stretch budget?
The comfortable figure uses the limits you chose. The stretch figure adds 8 points to the housing limit and 7 to the total limit, so 28/36 becomes 36/43. In the example that lifts the price from about $392,243 to $487,169, but a stretch budget leaves less for savings, repairs and rate rises.
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Made by Zulu Calculator, part of AlphaZulu LLC. Formulas are shown in full and rule figures are checked against official sources; see how we build calculators.