{
  "slug": "how-much-house-can-i-afford",
  "title": "How Much House Can I Afford?",
  "heading": "How Much House Can I Afford?",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/how-much-house-can-i-afford",
  "summary": "On $95,000 household income with typical debts, you can afford roughly a $340,000 home under the standard 28/36 rule.",
  "description": "Mortgage lenders qualify borrowers using debt-to-income ratios: your total housing payment (principal, interest, taxes, insurance) generally shouldn't exceed 28% of gross monthly income, and your total debt payments including housing shouldn't exceed 36%. This calculator applies both caps, backs out the lower resulting monthly housing budget, and converts that into an estimated maximum loan amount and home price at your interest rate and down payment.",
  "formula": "Max Housing Payment = min(28% × Gross Monthly Income, 36% × Gross Monthly Income − Other Debt). Loan Amount solved from payment via standard amortization formula. Home Price = Loan + Down Payment.",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=how-much-house-can-i-afford",
  "inputs": [
    {
      "id": "income",
      "label": "Annual household income",
      "kind": "number",
      "hint": null,
      "default": 95000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "debts",
      "label": "Other monthly debt payments",
      "kind": "number",
      "hint": null,
      "default": 400,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "downPayment",
      "label": "Down payment",
      "kind": "number",
      "hint": null,
      "default": 40000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "rate",
      "label": "Mortgage interest rate",
      "kind": "number",
      "hint": null,
      "default": 6.5,
      "unit": "%/yr",
      "min": 0,
      "max": 15
    },
    {
      "id": "termYears",
      "label": "Loan term",
      "kind": "number",
      "hint": null,
      "default": 30,
      "unit": "years",
      "min": 5,
      "max": 40
    },
    {
      "id": "taxInsRate",
      "label": "Taxes + insurance",
      "kind": "number",
      "hint": null,
      "default": 1.8,
      "unit": "% of home value/yr",
      "min": 0,
      "max": 5
    }
  ],
  "outputs": [
    {
      "id": "homePrice",
      "label": "Estimated max home price",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "loanAmount",
      "label": "Estimated max loan amount",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "maxHousingPayment",
      "label": "Max monthly housing payment",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "monthlyPI",
      "label": "Principal & interest portion",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Annual household income: 95000 $",
      "Other monthly debt payments: 400 $",
      "Down payment: 40000 $",
      "Mortgage interest rate: 6.5 %/yr",
      "Loan term: 30 years",
      "Taxes + insurance: 1.8 % of home value/yr"
    ],
    "outputs": [
      "Estimated max home price: $315,765",
      "Estimated max loan amount: $275,765",
      "Max monthly housing payment: $2,217",
      "Principal & interest portion: $1,743"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter annual household income ($).",
      "Enter other monthly debt payments ($).",
      "Enter down payment ($).",
      "Enter mortgage interest rate (%/yr).",
      "Enter loan term (years).",
      "Enter taxes + insurance (% of home value/yr).",
      "Read your estimated max home price on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "income": 57000,
        "debts": 250,
        "downPayment": 24000,
        "rate": 6.5,
        "termYears": 18,
        "taxInsRate": 1.08
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "income": 95000,
        "debts": 400,
        "downPayment": 40000,
        "rate": 6.5,
        "termYears": 30,
        "taxInsRate": 1.8
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "income": 152000,
        "debts": 650,
        "downPayment": 64000,
        "rate": 6.5,
        "termYears": 40,
        "taxInsRate": 2.8800000000000003
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How much house can I afford?",
      "a": "On $95,000 income with $400 in other monthly debt, a $40,000 down payment, and a 6.5% rate, the 28/36 rule caps your housing payment around $2,020/month, which supports roughly a $335,000-$345,000 home price."
    },
    {
      "q": "What is the 28/36 rule?",
      "a": "It's the standard lender guideline: housing costs at or below 28% of gross monthly income, and total debt (housing plus car loans, student loans, credit cards) at or below 36%."
    },
    {
      "q": "Does this include property taxes and insurance?",
      "a": "Yes — the calculator estimates taxes and insurance as a percentage of home value and folds them into your housing payment cap alongside principal and interest."
    },
    {
      "q": "Why is my affordable price lower than my bank's pre-approval?",
      "a": "Banks sometimes stretch to 43-45% back-end DTI on strong credit files, which raises the number but also raises your financial risk if income dips or rates reset on an ARM."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/how-much-down-payment-do-i-need",
    "https://www.revenuelab.fyi/toolbox/how-much-rent-can-i-afford"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — How Much House Can I Afford? (https://www.revenuelab.fyi/toolbox/how-much-house-can-i-afford)"
}