Home Affordability Calculator
Determine how much home you can afford based on your income, debts, and down payment.
Maximum Home Price
$200,000
Maximum Loan Amount
$140,000
Estimated Monthly Payment
$2,240
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What it does: Estimates how much house you can afford based on your income, monthly debts, interest rate, and down payment using the 28/36 rule.
When to use: Use this before you start house hunting to set a realistic budget. It tells you the maximum home price and loan amount a lender is likely to approve.
How to use: Enter your gross monthly income, total monthly debt payments (car, student loans, credit cards), expected interest rate, and down payment. The calculator applies the 28/36 rule to determine your max home price.
Key Inputs Explained
Worked Example
With $8,000/month income, $500/month debts, 6.5% rate, and $60,000 down: Max housing payment (28%) = $2,240, Max total debt (36%) = $2,880. After debts, max PITI = $2,380. At 6.5% for 30 years, max loan ≈ $375,000, max home price ≈ $435,000.
Assumptions & limitations: This calculator uses the 28/36 guideline. Some loan programs allow higher DTIs (FHA up to 43-57%, conventional up to 50%). It does not account for property taxes, insurance, or HOA — those are included in the 28% housing ratio.
Calculator FAQs
Why is my affordability lower than what the lender approved?
Lenders may use higher DTI limits or count income this calculator does not. But borrowing the maximum can leave you house-poor — many advisors recommend staying below 25% of take-home pay.
Should I use gross or net income?
Lenders use gross income. But for your own budget, consider using net (take-home) pay to ensure you can comfortably afford the payment along with other expenses.
How does my down payment affect affordability?
A larger down payment reduces the loan amount and monthly payment, allowing you to afford a more expensive home. It also may eliminate PMI, further reducing your monthly cost.
What if I have irregular income?
Lenders typically average 2 years of income for self-employed or commission earners. Use your average monthly income, but be conservative if your income varies.