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?
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.
Learn more from an authoritative source:
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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 →