Crunch Home Affordability Calculator
Enter your income, debts, down payment and rate — we'll apply the classic 28/36 rule to find the maximum home price you can comfortably afford.
| Max monthly housing payment | $0 |
| Limiting rule | — |
| Loan amount | $0 |
| Down payment | $0 |
How it works
The 28/36 rule caps your housing payment (principal, interest, tax, insurance) at 28% of gross monthly income, and at 36% of income minus existing debts. The lower of the two wins. That payment is converted to a max loan via the present-value annuity formula, then your down payment is added for the max price.
Formula & worked example
Formula: The 28/36 rule: housing payment (principal, interest, tax, insurance) capped at 28% of gross monthly income, and at 36% of income minus existing monthly debts. The lower cap wins and is converted to a maximum loan.
Worked example: On $90,000/year ($7,500/month): the 28% cap allows $2,100/month; the 36% cap minus $400 of debts allows $2,300 — so $2,100 is the maximum housing payment.
Frequently asked questions
What is the 28/36 rule?
A long-standing lender guideline: no more than 28% of gross income on housing, and no more than 36% on all debt including housing. Some loan programs allow higher ratios.
Do debts really lower how much house I can afford?
Yes — the 36% cap counts every monthly debt payment, so $500/month in car and student loans can cut your max price by tens of thousands.
Does a bigger down payment help?
It raises your max price dollar-for-dollar and can eliminate PMI at 20% down, which further improves affordability.
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