Home Affordability

What home price can you actually qualify for in California — based on standard debt-to-income rules, including property tax and insurance.

Your finances

Annual household income

Monthly debt payments

Loan assumptions

Down payment (%)

Interest rate (%)

Loan term (years)

Risk profile

Your max

$644,313

Maximum purchase price

Maximum monthly housing$4,200

Down payment required$128,863

Loan amount$515,450

Monthly income$15,000

The short answer

A common rule is that your total housing payment should stay under about 28% of your gross monthly income, and all your debt payments under about 36% (the “28/36 rule”). In high-cost California markets lenders often stretch these limits, but the ratios are a useful sanity check for how much home your income can realistically carry.

Frequently asked questions

Start with the 28/36 rule: keep your housing payment at or below 28% of gross monthly income and total debts at or below 36%. From there, your purchasing power depends on your down payment, interest rate, and existing debts. This calculator works backward from your income and debts to an estimated price range.

It’s a lending guideline. The front-end ratio (28%) caps your housing payment as a share of gross income; the back-end ratio (36%) caps all monthly debt — housing plus car loans, student loans, and minimum credit-card payments. Many California loans approve higher ratios, but exceeding them tightens your monthly budget.

Yes. A larger down payment lowers the loan amount and the monthly payment, which can raise the price you qualify for. Reaching 20% down also removes PMI, freeing up more of your budget for principal and interest.

Because prices, property taxes, and insurance are higher, the same income supports a smaller loan than in lower-cost states. The math is the same everywhere — the inputs are just larger here, so the income needed to stay inside the 28/36 ratios is higher.