Mortgages

Home Affordability Calculator

How much house can you actually afford? This calculator applies the same debt-to-income rules lenders use — housing costs under 28% of gross income, total debts under 36% — to turn your income, monthly debts, and down payment into a realistic maximum price, with the full payment breakdown at that price.

Tested against worked examplesHow we verify

Gross annual household income

Monthly debt payments

Car loans, student loans, card minimums — not rent or utilities.

Down payment saved

Interest rate

Loan term

Property tax rate (yearly)

US average is about 1.1% of home value; varies widely by state.

Home insurance (yearly)

You can afford a home up to

$359,750

Monthly housing budget: $2,566.67
Loan amount: $309,750
Principal & interest: $1,957.83
Property tax: $329.77
PMI (down payment under 20%): $129.06
Binding constraint: 28

Compare scenariosTry three values of one input

Vary

Home Affordability Calculator results for three values of Gross annual household income
Gross annual household income
You can afford a home up to	$326,217	$359,750+$33,534	$393,284+$67,067
Monthly housing budget	$2,310.00	$2,566.67+$256.67	$2,823.33+$513.33
Loan amount	$276,217	$309,750+$33,534	$343,284+$67,067
Principal & interest	$1,745.88	$1,957.83+$211.95	$2,169.79+$423.91
Property tax	$299.03	$329.77+$30.74	$360.51+$61.48
PMI (down payment under 20%)	$115.09	$129.06+$13.97	$143.03+$27.94

Every other input stays at the value you set above — currently $110,000 for gross annual household income. Differences are measured against the first column.

Saved scenariosSave this calculation

Name this scenario

Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.

How this calculator works

We compute your monthly budget as the lesser of 28% of gross monthly income and 36% minus existing debts, then solve in closed form for the price whose full carrying cost (principal & interest at your rate, property tax as a percentage of price, insurance, and PMI when the down payment is under 20%) exactly consumes that budget.

Estimates assume a fixed-rate loan and exclude HOA dues, mortgage insurance variations, and lender overlays. Your actual approval depends on credit score, reserves, and full underwriting.

What this assumes

The traditional 28/36 ratios. Conventional lending in practice often stretches the back-end limit toward 43%, and FHA further.
Gross income before tax, as a lender uses.
Maintenance, utilities and furnishing are excluded. None of them appear in a pre-approval, and all of them are real.

What changes this number

Existing debt payments: Determines which of the two ratios binds. If the back-end binds, the fix is clearing a debt rather than saving more.
Interest rate: Changes what a given payment buys far more than most buyers expect — the same payment supports a materially different price at 6% and 7%.
Down payment: Raises the reachable price directly, and crossing 20% frees the PMI amount into the loan you can support.

A worked example

Take the $85k income, $20k saved scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.

What you enter

Gross annual household income: $85,000
Monthly debt payments: $350
Down payment saved: $20,000

What it returns

You can afford a home up to: $257,130
Monthly housing budget: $1,983.33
Loan amount: $237,130
Principal & interest: $1,498.83
Property tax: $235.70

Try an example

$85k income, $20k saved Dual income $160k, 20% down target Debt-heavy: $95k income, $1,200 debts

Frequently asked questions

What is the 28/36 rule?

A lending guideline: housing costs (payment, taxes, insurance) should stay under 28% of gross monthly income, and ALL debt payments combined under 36%. Whichever cap you hit first sets your budget — this calculator shows which one binds for you.

How much income do I need for a $400,000 house?

At 6.5% with 20% down and typical taxes and insurance, a $400,000 home costs roughly $2,570 a month — which the 28% rule supports at about $110,000 of gross annual income with modest other debts. Set the price backwards using your own rate and down payment above.

Does a bigger down payment let me afford more house?

Twice over: every extra dollar adds directly to the price you can pay, and crossing 20% down removes PMI, freeing $100–300 a month of budget to cover more mortgage instead of insurance for the lender.

Do lenders actually use these ratios?

Conventional underwriting still anchors near them, though approvals can stretch higher (FHA loans commonly allow back-end ratios into the mid-40s). Being approvable isn't the same as being comfortable — many planners suggest staying below what the ratios allow, not above.

What monthly debts count against me?

Recurring credit obligations: car payments, student loans, personal loans, and credit-card minimums. Utilities, groceries, insurance, phone plans, and subscriptions don't count in DTI — lenders assume those come out of what's left.

What house can I afford on $120,000 a year?

With $500 of other monthly debt, $60,000 saved and a 6.5% rate, about $399,038 — a monthly housing budget of $2,800, of which $2,142.95 is principal and interest. Clearing that $500 debt would raise the figure by roughly $79,000.

This calculator helps answer

Can I afford this house?

Work out what a home actually costs you each month — payment, taxes, insurance, PMI — and whether a lender would approve it. Four calculators, in the order they matter.