Watcharu Finance

Home Affordability Calculator

Lenders size your loan from two ratios: housing costs against income, and total debt against income. Enter your numbers to see the price range those rules support.

$300,579 max home price

Max loan amount
$260,579
Housing payment budget
$2,240
P&I budget
$1,790
Bound by
front-end ratio

Uses the 28% front-end / 36% back-end DTI guidelines. Lenders vary.

How it works

The housing budget is the smaller of 28% of gross monthly income and 36% of income minus your other debt payments. Taxes and insurance come out of that budget, and the rest is inverted through the mortgage formula to a maximum loan amount.

Frequently asked questions

How much house can I afford on my salary?
A common rule of thumb is that your total housing payment should stay under 28% of gross monthly income, and all debt payments under 36%. On a $100,000 salary that's roughly $2,300 a month for housing. Enter your exact income, debts, and down payment above for a price range.
What is the 28/36 rule?
Lenders look at two ratios. The front-end ratio caps the housing payment (principal, interest, taxes, insurance, HOA) at about 28% of gross monthly income. The back-end ratio caps all monthly debt — housing plus car loans, student loans, and minimum credit-card payments — at about 36%. The lower of the two limits sets your budget.
Does my down payment change how much I can afford?
Yes, in two ways. A larger down payment means a smaller loan for the same house, and putting 20% down removes private mortgage insurance, which frees up more of your monthly budget for principal and interest.
Should I borrow the maximum a lender approves?
Usually not. The maximum is based on gross income and known debts; it ignores retirement savings, childcare, travel, and maintenance. Many buyers target a payment closer to 25% of take-home pay to keep a comfortable margin.

Learn more: How much house can I afford? — How lenders size your loan with the 28/36 rule, why your own comfortable number is usually lower, and the four inputs that move it most.

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