Home Affordability Calculator

Discover how much house you can afford based on your income, debt, down payment, and current interest rates. Get pre-qualified estimates with professional debt-to-income calculations.

Your Financial Information

$

Your total yearly income before taxes

$

Credit cards, auto loans, student loans, etc.

$

Cash available for down payment

%

Current mortgage interest rate

%
$
28%
Conservative (20%) Aggressive (50%)

Recommended: 28% for front-end DTI

Affordability Results

Maximum Home Price

$325,000

Loan Amount

$275,000

Monthly Payment

$1,833

Payment Breakdown

Principal & Interest $1,833
Property Tax $406
Home Insurance $100
Total PITI $2,339

DTI Analysis

Front-end DTI: 28.0%
Back-end DTI: 34.0%
Available Monthly Income: $4,161

Advertisement Space

How Home Affordability is Calculated

Key Calculations

Monthly Income

Annual Income ÷ 12

Max Housing Payment

Monthly Income × DTI Ratio

Max Home Price

(Loan Amount + Down Payment)

DTI Ratios Explained

Front-End DTI

Housing expenses ÷ Gross income. Recommended max: 28%

Back-End DTI

All debt payments ÷ Gross income. Recommended max: 36%

PITI Components

Principal, Interest, Taxes, Insurance

💡 Important Considerations

  • • This calculator provides estimates based on traditional lending guidelines
  • • Actual loan approval depends on credit score, employment history, and other factors
  • • Consider additional costs like HOA fees, maintenance, and utilities
  • • It's wise to stay below maximum DTI ratios for financial flexibility
  • • Interest rates and lending standards vary by lender and loan program

Related Calculators

Mortgage Payment Calculator

Calculate exact monthly payments for a specific loan amount.

Calculate Payment →

Debt-to-Income Calculator

Calculate your current DTI ratio and see how it affects loan approval.

Check DTI →

Rent vs Buy Calculator

Compare the costs of renting versus buying a home.

Compare Options →

Home Affordability Guide

The 28/36 Rule

Your monthly housing payment should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36% of your gross monthly income.

Down Payment Impact

A larger down payment reduces your monthly payment and may eliminate PMI. Consider 20% down to avoid private mortgage insurance and secure better rates.

Hidden Costs

Don't forget property taxes, insurance, HOA fees, maintenance, and utilities. These can add 1-3% of the home's value annually to your costs.