House Affordability Calculator
Calculate how much house you can afford based on income, debts, and down payment
About this calculator
The House Affordability Calculator helps you determine the maximum home price you can comfortably afford based on your financial situation. By analyzing your income, existing debts, down payment amount, and current interest rates, this tool provides a realistic estimate of your purchasing power. This calculator is essential for first-time buyers and anyone looking to upgrade, helping you set a proper budget before house hunting and avoiding financial overextension.
How to use
Enter your annual gross income, monthly debt payments (credit cards, loans, etc.), and available down payment amount. The calculator will apply standard debt-to-income ratios and factor in estimated property taxes, insurance, and HOA fees to determine your maximum affordable home price and monthly payment.
Frequently asked questions
What debt-to-income ratio does the calculator use?
Most lenders prefer a total debt-to-income ratio of 28-36%, meaning housing costs plus other debts shouldn't exceed this percentage of gross income.
Should I include all my debts in the calculation?
Yes, include all monthly debt payments like credit cards, student loans, car payments, and any other recurring debt obligations.
How much down payment do I need?
While 20% down avoids PMI, many programs allow 3-5% down. A larger down payment increases your buying power significantly.