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How Much House Can I Afford?

Last updated October 25, 2026

Enter your income, monthly debts and down payment to estimate the most expensive home you can realistically buy — using the same ratios lenders in the US, Canada and the UK actually apply.

Your finances

$
$/mo
Car, student loan, credit card minimums, etc.
$
%
years
× income
Property costs & ratios
% / yr
$
$/mo
%
%
You can afford a home up to about
—
Loan amount
—
Max monthly housing payment
—
Payment at your actual rate
—
Share of gross income
—

This is an estimate of what lenders typically allow, not a pre-approval. Leave room in your budget for maintenance (often 1%–2% of the home's value per year), closing costs and an emergency fund.

How this affordability calculator works

Lenders don't decide your budget from the house price — they start from your income and work backwards. This calculator does the same. It takes your gross monthly income, applies the debt-to-income limits for the lending rules you choose, subtracts your existing debt payments, and then finds the highest home price whose full monthly cost — principal, interest, property tax, insurance and HOA fees — still fits under that limit.

The front-end ratio caps housing costs as a share of income. The back-end ratio caps housing plus all other debts. Whichever limit is tighter sets your budget, and the result card tells you which one it was.

Affordability rules by country

United States: 28/36 and FHA

Conventional lenders traditionally look for housing costs at or below 28% of gross income and total debts at or below 36%. Automated underwriting often approves more — sometimes into the mid-40s for total debt — but stretching that far leaves little room for savings or surprises. FHA loans, designed for buyers with smaller down payments, use guideline ratios of 31% and 43%.

Canada: GDS, TDS and the stress test

Canadian lenders measure the Gross Debt Service (GDS) and Total Debt Service (TDS) ratios, generally capped at about 39% and 44%. Crucially, the payment is calculated at a stress-test rate — the greater of your contract rate plus two percentage points or 5.25% — so you'd still cope if rates rose at renewal. Select the Canada option and the calculator applies the stress test automatically.

United Kingdom: income multiples

UK lenders typically cap borrowing at around 4–4.5 times gross income, and the Bank of England limits how many loans above 4.5× each lender can issue. Your maximum price is therefore roughly your loan limit plus your deposit. Lenders still review your outgoings in detail, so treat the result as a ceiling rather than a target.

Worked example

A household earning $110,000 a year has gross monthly income of about $9,167. Under 28/36, housing can take up to $2,567 a month, and housing plus debts up to $3,300. With $500 of existing debt payments, the back-end limit allows $2,800 for housing, so the front-end limit of $2,567 is the binding one. After property tax and insurance, that supports a loan of about $316,000 at 6.25% over 25 years — or a price of roughly $375,000 with $60,000 down.

How to afford more house (safely)

Once you have a price range, plug it into the mortgage calculator to see the full amortization schedule, or test whether buying beats renting with the rent vs buy calculator.

Frequently asked questions

What is the 28/36 rule?

It's a long-standing US lending guideline: spend no more than 28% of your gross monthly income on housing costs (mortgage, property tax, insurance, HOA) and no more than 36% on all debt payments combined. Many lenders approve higher ratios, but 28/36 is a sensible comfort level.

Should I use gross or net income?

Lenders use gross income (before tax), so the calculator does too. For your own budget, also check that the payment fits comfortably within your take-home pay after savings, childcare and other regular costs.

What debts should I include?

Include minimum monthly payments on car loans, student loans, credit cards, personal loans and child support or alimony. Don't include utilities, groceries, phone bills or insurance premiums — lenders don't count them in debt ratios.

How does the Canadian stress test affect affordability?

Canadian lenders must qualify you at the higher of your contract rate plus 2 percentage points or 5.25%. Your GDS ratio (housing costs ÷ income) and TDS ratio (all debts ÷ income) are then capped at roughly 39% and 44%. That's why Canadian approvals are usually lower than the payment you'll actually make. Rules can change, so confirm the current qualifying rate with your lender.

How do UK lenders decide how much I can borrow?

Most UK lenders start with an income multiple — typically around 4 to 4.5 times your annual income (combined, for joint applications), with some offering up to 5–5.5 times for higher earners or certain professions. They then check your outgoings and stress-test the payment at a higher rate.

Does a bigger down payment always mean I can afford more?

Yes — every extra dollar of deposit adds directly to the price you can pay without raising your monthly cost. In the US and Canada a 20% down payment also removes mortgage insurance, which frees up more of your budget.

Related calculators & guides

Mortgage CalculatorMonthly payment with tax, insurance, PMI and an amortization schedule.The 28/36 rule explainedHow debt-to-income ratios set your home buying budget.Rent vs Buy CalculatorCompare net worth from renting vs buying and find your break-even year.Closing costs explainedEvery fee and tax due when you buy a home, country by country.