Home Affordability Calculator
How much house you can afford from your income, debts and down payment: US 28/36 rules or UK income multiples.
How to Use Home Affordability Calculator
- 1Choose where you're buying: the US uses debt-to-income rules, the UK an income multiple.
- 2Enter your gross annual income (everyone on the mortgage), your monthly debt payments and your down payment or deposit.
- 3Enter a mortgage rate and term. For the US, open 'Taxes, insurance and lender limits' to set property tax, insurance, HOA dues, PMI and the 28/36 limits.
- 4For the UK, pick the income multiple lenders might offer you (4 to 5.5 times).
- 5Read the price you could afford, the monthly payment and, in the table, how a different rate changes it.
Frequently Asked Questions
How much house can I afford on $100,000 a year?
With $500 a month of other debts, $40,000 down, a 6.5% 30-year mortgage, 1.1% property tax and $1,800 a year insurance, about $320,000 under the 28/36 rule. That's a payment of $2,333 a month including taxes, insurance and PMI. At 7.5% the same budget buys about $298,000.
What is the 28/36 rule?
A guideline many US lenders use: spend no more than 28% of gross monthly income on housing (mortgage, property tax, insurance, PMI and HOA dues) and no more than 36% on all debts including housing. Many lenders allow higher ratios, often up to 43–45% total, especially with good credit.
How much can I borrow for a mortgage in the UK?
Most lenders lend about 4 to 4.5 times household income, and some up to 5 or 5.5 times. On £60,000 at 4.5 times, that's £270,000; with a £30,000 deposit you could buy at about £300,000, paying £1,500.75 a month at 4.5% over 25 years.
Does the down payment change how much I can afford?
Yes, in two ways: every dollar down adds a dollar to the price, and putting down 20% or more removes PMI, which frees part of the monthly budget. In the UK, a bigger deposit lowers the loan-to-value, which usually unlocks better rates.
What costs aren't included?
Closing costs (often 2–5% of the price in the US), Stamp Duty in England and Northern Ireland, legal and survey fees, moving costs, repairs and maintenance. Keep savings for these on top of the deposit.
Should I borrow the maximum a lender offers?
Not necessarily. A lender's limit is what it judges you can repay, not what leaves room for savings, childcare, retirement or a rate rise. Many people aim below the maximum.
About Home Affordability Calculator
This home affordability calculator answers 'how much house can I afford?' the way lenders work it out. In the US it applies the 28/36 debt-to-income rule to your income, existing debts and down payment, and includes property tax, homeowners insurance, HOA dues and PMI in the monthly cost. In the UK it uses the income multiples lenders apply and shows the payment if rates rose by 3 points, as lenders check.
It shows which limit sets your budget (housing costs or total debt), the full monthly payment broken down, and a table of how the affordable price or payment changes if rates move by up to one point.
Every lender has its own rules and checks your credit, so treat the result as a guide and get an agreement in principle or pre-approval for a firm figure.