House Affordability Calculator

Determine how much house you can afford based on your income, debts, and down payment

Our house affordability calculator helps you understand your home buying budget by analyzing your income, monthly debts, down payment, and current interest rates. Get a realistic estimate of your price range and monthly payment capacity.

Income Information

Annual Gross Income ($)

Additional Monthly Income ($)

Monthly Debt Payments

Credit Card Payments ($)

Car Loan Payments ($)

Student Loan Payments ($)

Other Monthly Debts ($)

Loan Details

Down Payment ($)

Interest Rate (%)

Loan Term (years)

Additional Housing Costs

Property Tax Rate (%)

Home Insurance ($/month)

PMI Rate (% annually)

HOA Fees ($/month)

Affordability Results

Enter your financial information to see how much house you can afford

How House Affordability Works

The 28/36 Rule

Front-end Ratio (28%): Your housing costs should not exceed 28% of your gross monthly income.

Back-end Ratio (36%): Your total debt payments (including housing) should not exceed 36% of your gross monthly income.

These ratios help ensure you can comfortably afford your mortgage payments while maintaining financial stability.

Calculation Method

Step 1: Calculate maximum monthly housing payment using the 28% rule

Step 2: Subtract property tax, insurance, PMI, and HOA fees

Step 3: Calculate maximum loan amount based on remaining payment capacity

Step 4: Add down payment to get maximum home price

Example Calculation

Given:

• Annual Income: $80,000

• Monthly Debts: $500

• Down Payment: $40,000

• Interest Rate: 6.5%

• 30-year loan

Result:

• Monthly Income: $6,667

• Max Housing Payment: $1,867 (28%)

• Available for P&I: ~$1,500

• Max Loan: ~$237,000

• Max Home Price: ~$277,000

Frequently Asked Questions

What's included in the debt-to-income ratio?

The debt-to-income ratio includes all monthly debt payments: credit cards, car loans, student loans, personal loans, alimony, and the proposed mortgage payment. It does not include utilities, groceries, or other living expenses.

How much should I put down on a house?

While 20% down is ideal to avoid PMI, many programs allow as little as 3-5% down. FHA loans require 3.5%, VA loans can be 0% for qualified veterans, and conventional loans can be as low as 3% for first-time buyers.

What other costs should I consider?

Beyond the mortgage payment, budget for closing costs (2-5% of home price), moving expenses, immediate repairs or improvements, higher utility bills, and ongoing maintenance costs (typically 1-3% of home value annually).