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House Affordability Calculator

Estimate the home price you can afford using common lender guidelines of 28% of income for housing and 36% for total debt.

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House Affordability

Calculate how much home you can comfortably afford based on your income

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Recommended House Price
Based on a 28/36 Debt-to-Income ratio
Monthly P&I
$0
Loan Amount
$0
DTI Ratio
0%
Monthly Budget Allocation

Affordability is not the biggest loan a bank will approve; it is the price whose full monthly cost your budget can carry in an ordinary month. This calculator estimates that price from your income, debts and down payment, using the same ratios lenders start from.

How to use this calculator

  • Enter your gross yearly income.
  • Add your monthly debt payments and your planned down payment.
  • Enter an interest rate and term for the estimate.
  • Press calculate to see the affordable price and monthly cost.

The 28/36 starting point

A common lender guide keeps housing costs near or under 28% of gross income, and all debts under about 36%. It is a ceiling, not a target: remember the payment also carries property tax, insurance and maintenance, which this estimate can include if your rates are entered. If the result feels tight, it is.

Frequently asked questions

What costs count in the monthly housing figure?
Principal and interest, plus property tax, home insurance and any mortgage insurance or association fees. Taxes and insurance alone can add a noticeable slice.
Should I buy at the top of my affordable range?
Only if the rest of your budget still works with the full payment and you keep an emergency fund. Most buyers are glad they left headroom.
How does a bigger down payment change affordability?
It raises the price you can reach with the same payment, because less is borrowed. It also cuts interest and can remove mortgage insurance at 20%.