↑↓ to move · Enter to open · Esc to close

Home Affordability Calculator

Find out how much house you can afford from your income, debts, and down payment. The home affordability calculator uses the debt-to-income limits lenders apply.

Runs in your browser. Your data is not uploaded.
Reviewed by on

Car, student loans, card minimums

Home price you can afford
–

Estimate only. Not financial advice.

How to use the Home Affordability Calculator

  1. Enter your Annual income, Monthly debt payments, and Down payment.
  2. Set the Interest rate, Loan term, property tax, insurance, and HOA, and choose a Debt-to-income limit.
  3. Press Calculate. You get the highest home price, the loan it needs, and how the monthly budget splits.

How it works

housing budget = income ÷ 12 × DTI − monthly debts
principal and interest = housing budget − tax − insurance − HOA
max loan = principal and interest × (1 − (1 + i)^−n) ÷ i
price = max loan + down payment

Property tax depends on the price, so the calculator solves for the price and the tax together. With the 28/36 rule, housing may take at most 28% of gross income, and housing plus other debts at most 36%.

Examples

  • $100,000 income, 36% limit, $500 in debts, 6.5% for 30 years, no tax or insurance: a $2,500 a month budget supports a loan of $395,527.
  • Add a $60,000 down payment, 1.1% property tax, and $1,500 a year insurance: the price you can afford is $380,559.
  • Under the 28/36 rule, the same buyer's housing budget drops to $2,333.33 and the price to $357,531.

Affordable to a lender versus affordable to you

Lenders approve what your income can carry on paper. They do not see childcare, travel, or savings goals. Many buyers aim below the maximum so a job change or a repair does not strain the budget.

Limitations

  • Lenders also weigh credit score, savings, and job history, which this tool cannot.
  • Closing costs and moving costs are not included.
  • PMI is not included. Use the mortgage calculator once you have a price in mind.

Sources

Read the guide

Rent or buy, after you run the numbers

Price your income can carry, the full mortgage, and rent versus buy for the years you plan to stay. The figures are estimates, not a decision.

Frequently asked questions

How much house can I afford on $100,000 a year?

With $500 in monthly debts, a 36% limit, and a 6.5% 30-year loan, about $395,000 of loan before taxes and insurance, plus your down payment.

What is the 28/36 rule?

Housing costs should stay under 28% of gross monthly income, and all debts including housing under 36%.

What debt-to-income ratio do lenders accept?

It depends on the loan. Fannie Mae's guide caps the total ratio at 36% for manually underwritten loans, or 45% when the borrower meets its credit score and reserve requirements, and allows up to 50% through its Desktop Underwriter system. Government-backed loans and other lenders set their own limits.

Often used together with Home Affordability Calculator.