Estimate the most expensive home you can afford from your income, debts, down payment and interest rate.
Lenders also check credit score, reserves and employment. Lenders set their own limits.
Please do not make financial decisions based on these results.
What is the House Affordability Calculator?
A house affordability calculator estimates the highest home price you can buy by applying lender-style limits to your income, existing debts and down payment.
How lenders judge affordability
Lenders usually look at two ratios. The front-end ratio compares your total housing payment with your gross monthly income. The back-end ratio adds your other monthly debts, such as car loans, student loans and credit card minimums. Many lenders prefer a housing ratio near 28% and a total debt ratio near 36%, though limits differ by loan type and credit profile.
The calculator applies both limits and uses the lower result, then works backward from the payment to a home price that includes tax, insurance and PMI.
Why your own numbers matter
The answer is only as good as the inputs. Gross income, monthly debts, the down payment you have saved and the interest rate you expect all change the result. A higher rate or a larger debt payment can lower the price you can afford by tens of thousands of dollars.
- Monthly debts. Include minimum payments on every loan and card. Paying a balance off before applying can raise your limit.
- Down payment. More cash up front reduces the loan and may remove PMI.
- Property tax and insurance. These differ by area, so use local figures.
Affordable is not the same as comfortable
A lender may approve a payment that leaves little room for savings or surprises. Compare the payment with your real budget using the budget calculator, and check the ratios yourself with the debt-to-income ratio calculator. When you have a target price, the mortgage calculator gives the full monthly cost and the rent vs. buy calculator helps you decide whether buying makes sense for you at all.
How to use the House Affordability Calculator
- Fill in the fields. You will need Gross income ($), Monthly debt payments ($): car, student loans, cards, Down payment saved ($), Interest rate (% per year), Loan term (years), Property tax (% of home value per year), Home insurance ($ per year). Use figures from a lender quote or your tax bill where you have them, and keep the term and rate realistic. Fields marked optional can stay at zero.
- Choose your options. Pay period change how the result is worked out, and the form updates to match your choice.
- Read the result. The highlighted box gives the You can afford a home up to, and the cards below show Loan amount, Down payment, Principal & interest. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the House Affordability Calculator using the default values shown in the calculator above:
Inputs
| Gross income ($) | 95,000 |
|---|---|
| Pay period | Yearly |
| Monthly debt payments ($): car, student loans, cards | 400 |
| Down payment saved ($) | 60,000 |
| Interest rate (% per year) | 6.5 |
| Loan term (years) | 30 |
| Property tax (% of home value per year) | 1.1 |
| Home insurance ($ per year) | 1,500 |
| PMI (% of loan per year, if down < 20%) | 0.6 |
| Max housing payment (% of gross income) | 28 |
| Max total debt payments (% of gross income) | 36 |
Results
| You can afford a home up to | $323,225.46 |
|---|---|
| Loan amount | $263,225.46 |
| Down payment | $60,000.00 (18.56%) |
| Principal & interest | $1,663.76 |
| Property tax | $296.29 |
| Insurance | $125.00 |
| PMI | $131.61 |
| HOA | $0.00 |
| Total monthly housing | $2,216.67 |
With these inputs the calculator returns You can afford a home up to: $323,225.46. Change any value in the calculator to see how the result moves.
What the results tell you
The results panel of the House Affordability Calculator reports You can afford a home up to, loan amount, down payment, principal & interest, property tax, insurance and pmi. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Tips for better results
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What are the 28/36 rules?
Lenders often cap housing costs at 28% of gross income and total debt at 36%.
Does a bigger down payment help?
Yes. It lowers the loan, the payment and PMI, which raises the price you can afford for the same monthly budget.
How much house can I afford?
A common rule is to keep housing costs under about 28% of gross income and total debt under 36%. The House Affordability Calculator applies those limits to your numbers.
Are property tax, insurance and PMI included?
Yes, this calculator includes property tax, home insurance and PMI. Enter your own local figures because they vary by county, insurer and lender.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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Guides that use this calculator
- How Much House Can I Afford on a $100K Salary?
- Mortgage Payment on a $400,000 House: Real Numbers
- FHA vs Conventional Loan: Which Costs Less?
- Debt-to-Income Ratio: What Lenders Count and What They Ignore
- How Much Rent Can You Afford? The 30% Rule, the 40× Rule and a Better Test
- What Is PMI and How Do You Remove It? Costs and Timeline