About this tool
Compute the maximum home price you can afford using the 28/36 rule: housing payments capped at 28 % of gross income, total debt at 36 %. Reverse-solves the mortgage formula for principal, then adds the down payment.
Formula
maxPayment = min(0.28·income, 0.36·income − debts). principal = M · (1 − (1+r)^(−N)) / r. maxHomePrice = principal + downPayment.
Worked example
$8,000 monthly income, $500 debt, $50k down, 6.5 % APR, 30 yr → ~$405k home price.
Notes
Conservative — banks may approve more or less depending on credit, taxes, insurance, and HOA fees. Use this as a starting point.