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  1. Home
  2. Financial Tools
  3. House Affordability Calculator

House Affordability Calculator

Calculate how much house you can afford based on your income, debts, and down payment. See your maximum home price and monthly payment breakdown.

Formula:Max Home = (Income × 0.28 - Debts) / PITI Rate

Affordability Summary

Max Home Price

$364,517

Based on 28/36 rule

Monthly Payment

$2,333

PITI + PMI + HOA

Loan Amount$291,614
Down Payment$72,903
Front-End Ratio28.0%
Back-End Ratio34.0%

Income & Debts

Your household financials

$
$

Include car payments, student loans, credit cards, etc.

Loan Terms

Down payment and interest details

%
330
%

Property Costs

Taxes, insurance, and HOA fees

%

US average: ~1.1%. Ranges from 0.3% (HI) to 2.5%+ (NJ, IL).

$
$

Monthly Payment Breakdown

Principal:$264
Interest:$1,580
Taxes:$365
Insurance:$125

Affordability by Income

IncomeMax PriceMonthly Payment
$60,000/yr$194,043$1,300/mo
$80,000/yr$287,500$1,866/mo
$100,000/yr$364,517$2,333/mo
$125,000/yr$460,801$2,916/mo
$150,000/yr$557,091$3,499/mo
$200,000/yr$749,853$4,667/mo

Debt-to-Income Ratios

Standard lending guidelines

Front-End Ratio (Housing)28.0% / 28%
Back-End Ratio (Total Debt)34.0% / 36%

Affordability Summary

Max Home Price

$364,517

Based on 28/36 rule

Monthly Payment

$2,333

PITI + PMI + HOA

Loan Amount$291,614
Down Payment$72,903
Front-End Ratio28.0%
Back-End Ratio34.0%

Quick Answer

Home affordability depends on income, debts, down payment, and interest rates. Generally, housing costs should be under 28% of gross income, total debt under 36%. Our calculator shows the maximum home price you can afford.

Key Facts

  • 28/36 rule: housing 28%, total debt 36% of gross income
  • Lenders may approve up to 43% DTI for qualified borrowers
  • Higher down payment = higher affordable price
  • Interest rates significantly impact affordability
  • Don't forget taxes, insurance, and HOA in calculations
  • Pre-approval gives more accurate affordability than calculators

Adjust Annual Income

See how your income affects the maximum home price you can afford

$40,000$100,000$300,000

Personalized Insights

4 insights based on your inputs

Heads Up

3.6x income is on the higher end. Consider reducing debts or increasing your down payment to improve affordability.

Good News

With 20% down, you avoid PMI and get better loan terms—this saves you thousands over the life of the loan.

Note

Your $500/month in existing debts reduces your home buying power by roughly $24,000. Paying down debt increases affordability.

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Frequently Asked Questions

Generally, you can afford a home 2.5-3x your annual income. Lenders use debt-to-income ratios: front-end (housing costs) should be ≤28% of gross income, back-end (all debts) should be ≤36%. Your actual affordability depends on down payment, rates, taxes, and other debts.

Typically 2.5-3x income. Housing costs ≤28% of income, total debt ≤36%.

The 28/36 rule is a lending guideline: housing costs (mortgage, taxes, insurance) should not exceed 28% of gross monthly income (front-end ratio), and total monthly debt payments should not exceed 36% of gross income (back-end ratio).

Housing ≤28% of income, total debt ≤36%. Standard lending guideline.

Minimum down payments: Conventional loans 3-5%, FHA loans 3.5%, VA/USDA loans 0%. However, 20% down avoids PMI, reduces monthly payments, and may get better rates. Median first-time buyer puts down 6%, repeat buyer 17%.

Minimum 3-5% conventional, 3.5% FHA, 0% VA. 20% avoids PMI.

PITI: Principal, Interest, property Taxes, homeowner's Insurance. Also consider: PMI (if <20% down), HOA fees, maintenance (budget 1% of home value/year), and utilities. Total housing costs are typically 1.5-2x the base mortgage payment.

PITI: Principal, Interest, Taxes, Insurance. Plus PMI, HOA, maintenance, utilities.

Every 1% rate increase reduces buying power by roughly 10%. At 6% rate, a $2,000 payment affords ~$333K. At 7%, the same payment affords ~$300K. Rate changes have a significant impact on how much house you can afford.

Each 1% rate increase reduces buying power ~10%. Significant impact on affordability.

Affordability Summary

Max Home Price

$364,517

Based on 28/36 rule

Monthly Payment

$2,333

PITI + PMI + HOA

Loan Amount$291,614
Down Payment$72,903
Front-End Ratio28.0%
Back-End Ratio34.0%