The House Affordability Calculator estimates the maximum home price you can afford based on your income, debts, down payment, and interest rate. It uses standard lending guidelines to give you a realistic budget before you start house hunting.
How the Formula Works
Maximum mortgage = Payment you can afford × [(1+r)^n − 1] ÷ [r × (1+r)^n]. Affordable payment = Gross income × 0.28 (front-end ratio) minus property tax and insurance estimates.
How to Use This Calculator
Enter your annual household income
Enter your monthly debt payments
Enter your available down payment
Enter the expected interest rate and loan term
View the maximum home price you can afford
Tips & Best Practices
Just because you qualify for a certain amount doesn't mean you should borrow it — leave room for other financial goals
The 28/36 rule is a guideline, not a mandate — factor in your personal lifestyle and expenses
Don't forget closing costs (2–5% of home price) and moving expenses when budgeting
A larger down payment means a smaller loan, lower monthly payments, and no PMI (at 20%+)
Important Limitations
Estimates are based on general lending guidelines — actual approval depends on credit score, employment history, and lender criteria
Does not account for HOA fees, maintenance costs, or utility expenses
Property tax and insurance rates vary significantly by location