Home Affordability With Debts Calculator
How much house you can afford once existing debts count.
Max home price
Principal + interest
Property tax
Insurance
Total monthly housing
How to use this calculator
Enter your income, non-housing monthly debts, expected down payment, rate and term. It applies the 28/36 rule: housing under 28% of gross income and total debt under 36%, then solves for the price a payment supports.
Worked example
On a $100,000 household income, the 28% front-end rule allows about $2,300 a month for housing. The 36% back-end rule allows about $3,000 for all debts combined. If you already pay $500 a month on car and card debts, your housing budget is the lower of $2,300 and $3,000 - $500 = $2,500, so $2,300 wins.
What the result means
The tool applies both rules at once and returns the price you can afford without being boxed out by existing debts. Debts shrink your ceiling because lenders count them against the same 36% bucket as your mortgage.
The two ratios explained
- Front-end (28%): mortgage payment including tax and insurance, as a share of gross income.
- Back-end (36%): mortgage plus every other monthly debt payment.
- Your limit is whichever ratio binds first - high debts almost always make the back-end bind.
Frequently asked questions
Can I clear debts to buy a bigger home?
Often yes - paying off a car or card lifts the back-end ceiling directly. Lenders also weigh your credit score, so lower balances help twice.
Does this include property tax and insurance?
Yes - the calculator folds in the property tax rate and insurance you enter, because lenders count the full payment, not just principal and interest.