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Calculate the maximum home price you can afford based on your income, debts, down payment, and monthly expenses. Get instant results with detailed breakdowns and multiple scenarios.
A house affordability calculator is a financial tool that helps you determine the maximum home price you can comfortably afford based on your income, existing debts, down payment savings, and other financial factors. It uses industry-standard debt-to-income ratios and lending guidelines to provide realistic estimates.
This calculator considers multiple factors including your gross monthly income, monthly debt obligations, down payment percentage, interest rates, property taxes, homeowners insurance, HOA fees, and PMI requirements. It applies the 28/36 rule (or custom ratios) to ensure your housing expenses remain manageable.
Whether you're a first-time homebuyer, looking to upgrade, or planning to relocate, this calculator provides the clarity you need to set a realistic home-buying budget and avoid overextending yourself financially.
Input your annual or monthly gross income, plus any additional income from bonuses, rental properties, or side businesses.
Include all recurring monthly debts: car loans, credit cards, student loans, and other obligations.
Choose your down payment percentage (5-25%) and enter your available cash for down payment and closing costs.
See your maximum affordable home price, required cash, monthly payments, and debt-to-income ratios instantly.
Also called the housing ratio, this measures your monthly housing expenses (PITI: Principal, Interest, Taxes, Insurance) as a percentage of your gross monthly income.
Housing Payment ÷ Gross Income ≤ 28%
Example: With $6,000 monthly income, your housing payment should not exceed $1,680.
This measures your total monthly debt payments (housing + car loans + credit cards + student loans) as a percentage of your gross monthly income.
Total Debt ÷ Gross Income ≤ 36%
Example: With $6,000 monthly income, your total debt should not exceed $2,160.
Most conventional lenders use the 28/36 rule, but some programs (like FHA) allow up to 31/43. Lower ratios improve your chances of approval and indicate healthier finances.
Higher stable income increases buying power. Lenders verify employment history and income consistency.
Car loans, credit cards, and student loans reduce how much you can borrow for a mortgage.
Larger down payments (20%+) eliminate PMI, lower monthly payments, and improve loan terms.
Lower rates increase affordability. A 1% rate change can affect buying power by 10-15%.
Higher scores (740+) qualify for better rates. A 100-point difference can cost thousands.
Property taxes, insurance, and HOA fees vary by location and significantly impact monthly payments.
Most common loan type. Requires 3% minimum down payment, but 20% down avoids PMI and gets better rates.
Government-backed loan with lower down payment and credit requirements. Requires mortgage insurance.
Available to eligible veterans, active military, and spouses. No down payment or PMI required.
For rural and suburban properties. No down payment required, but has income limits and location restrictions.
Reduce or eliminate high-interest debts to lower your DTI ratio and increase affordability.
Side hustles, raises, or bonuses can significantly boost your buying power.
Pay bills on time, reduce credit utilization, and fix errors to qualify for better rates.
20% down eliminates PMI and reduces monthly payments by hundreds of dollars.
Lower property taxes and insurance in different areas can increase affordability.
Compare multiple lenders. A 0.5% rate difference can save tens of thousands.
Our house affordability calculator uses industry-standard formulas and guidelines recommended by:
Last updated: December 20, 2024. Calculator formulas are based on current lending standards and may vary by lender and location.
Compare affordability with different down payment percentages side-by-side
See exact monthly costs: P&I, taxes, insurance, HOA, and PMI separately
Instantly see if you have enough savings for down payment and closing costs
Instant recalculation as you adjust income, debts, or down payment