Home Affordability Calculator
Find how much house you can afford based on your income, debt, down payment, and local tax rates — using standard lender DTI guidelines.
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How to use this calculator
- 1
Enter your total annual household gross income — include all borrowers' income.
- 2
Enter existing monthly debt payments (car, student loans, credit card minimums) — these reduce your housing budget.
- 3
Enter your available down payment — a 20% down payment avoids PMI and improves affordability.
- 4
Add your local property tax rate (typically 0.5–2.5%) and insurance rate — these are included in your PITI.
Frequently asked questions
What is the 28/36 rule for home affordability?
The 28/36 rule: your housing payment (PITI) should be no more than 28% of gross monthly income, and total debt payments no more than 36%. At $100,000 household income, that's $2,333/month for housing. This calculator uses the more permissive 43% back-end DTI (used for FHA and many conventional loans) alongside the 28% front-end cap.
How does debt affect home affordability?
Every dollar of existing debt reduces your housing budget. With $1,000/month in car and student loan payments, your max housing budget drops by $1,000. This is why paying off debts before buying a home can meaningfully increase your price range.
Should I put more than 20% down?
Pros of larger down payment: eliminates PMI, lower monthly payment, lower interest paid, easier to qualify. Cons: uses up liquid savings, opportunity cost of investing. Going from 20% to 30% down saves roughly $150–200/month on a $400K home but depletes $40,000 in savings. Most advisors recommend 20% if you have at least 3–6 months emergency fund remaining.
How important is the mortgage rate to affordability?
Extremely — a 1% rate change on a $300K loan changes the monthly PI payment by about $175/month. At 7%, your $300K loan costs $1,996/month in PI. At 6%, it's $1,799. That $197/month difference qualifies you for roughly $33,000 more home. When rates are high, buying less house or making a larger down payment are the main levers.
Home Affordability Calculator — How much house can you afford?
How to use the home affordability
Use this home affordability to find how much house you can afford based on your income, debt, down payment, and local tax rates — using standard lender dti guidelines. Enter your values above and get your result in seconds. The tool is free, works on all devices, and keeps your data private — nothing is stored or shared.
How the home affordability works
The home affordability calculator uses standard formulas used in financial planning, budgeting, and investment decisions. Enter your inputs, and the tool calculates the result instantly in your browser. No server-side processing means your data stays on your device. Results update in real time as you change inputs.
True cost of homeownership beyond the mortgage
The purchase price is just the beginning. Ongoing costs: property tax (avg ~1.1% nationally), homeowner's insurance (~0.5%), HOA fees (varies widely), maintenance (budget 1–2% of home value annually), utilities, and PMI if applicable. A $400,000 home with 1.5% property tax and $2,000 insurance adds $6,000/year ($500/month) to your cost of ownership beyond principal and interest.
Pre-approval vs affordability
Lender pre-approval tells you the maximum they'll lend, not what you should borrow. Lenders approve up to 43–50% back-end DTI, which can leave borrowers house-poor. Financial advisors generally recommend keeping housing at 25–30% of gross income (more conservative than lender limits) to leave room for retirement savings, emergency fund, and lifestyle spending.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →