Home Affordability Calculator
Find out how much house you can afford based on your income, existing debts, and down payment. We use the 28/36 rule to calculate a comfortable home price range.
Before taxes, all household earners
Car loans, student loans, credit cards, etc.
You can afford up to
$299,805
with $60,000 down (20%)
Conservative
$254,834
Recommended
$299,805
Maximum
$329,785
Monthly Income: $7,083
Housing Payment: $1,966
Other Debts: $500
Total Obligations: $2,466
How It Works
1. Enter Your Finances
Input your annual income, monthly debts, and available down payment to start your calculation.
2. Adjust Loan Terms
Set your interest rate, loan term, property tax rate, and other monthly costs for accuracy.
3. See Your Budget
Get your maximum home price, monthly payment breakdown, and DTI analysis instantly.
Frequently Asked Questions
- 1.Pay down existing debts to lower your DTI
- 2.Save a larger down payment to reduce PMI
- 3.Improve your credit score for better rates
- 4.Consider a longer loan term (lower payments)
- 5.Shop for lower property tax areas
- 6.Look for homes without HOA fees
- 7.Add a co-borrower to increase income
- 8.Get pre-approved to know your exact limit
Free Home Affordability Calculator Based on the 28/36 Rule
Determining how much house you can afford is one of the most important steps in the home buying process. Our free home affordability calculator uses the industry-standard 28/36 rule to analyze your income, debts, and down payment to find a realistic price range. Unlike simple calculators that only look at income, this tool considers your complete financial picture including existing debts, property taxes, insurance, and PMI.
Understanding Your Buying Power
Your home buying budget is determined by several factors: your gross income, existing monthly debt payments, available down payment, and current interest rates. Lenders use debt-to-income (DTI) ratios to ensure you can comfortably afford your mortgage. The front-end ratio (28%) limits housing costs, while the back-end ratio (36%) limits total debt. This calculator applies both limits to find your maximum comfortable purchase price.
Beyond the Calculator
While this calculator provides a solid starting point, your actual buying power depends on additional factors like your credit score, employment history, and the type of loan you choose. FHA loans may allow higher DTI ratios, while VA loans offer no-down-payment options for veterans. We recommend getting pre-approved by a lender to know your exact borrowing limit.
Smart Home Buying Decisions
Just because you can afford a certain price doesn't mean you should maximize your budget. Consider leaving room for unexpected expenses, home maintenance, and lifestyle costs. Many financial advisors suggest targeting the conservative estimate rather than the maximum to maintain financial flexibility and avoid becoming "house poor."
Ready to Start House Hunting?
Explore our mortgage calculator and closing cost estimator to plan your purchase.
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