Home Affordability Calculator
Enter your income, debts, and assumptions to estimate a realistic home price range using industry DTI standards.
Your Financial Information
Accurate inputs yield better estimates
Income & Debts
Rates & Ratios
Recurring Property Costs
Applied only if LTV > 80%.
Affordability Analysis
Derived maximum price & payment structure
How the home affordability calculator works
This home affordability calculator answers the question every buyer asks first: how much house can I afford. Instead of a single rule of thumb, it applies the same debt-to-income limits lenders use, then layers in property taxes, homeowners insurance, HOA dues, and PMI so the price range reflects your true monthly cost. The result is much closer to what a lender will actually approve than a quick income multiple.
The 28/36 rule explained
Lenders generally want your housing payment at or below 28 percent of gross monthly income, the front-end ratio, and your total monthly debt at or below 36 percent, the back-end ratio. FHA loans allow more, often 31 percent front-end and up to 43 to 50 percent back-end with strong credit or reserves. Your affordable price is set by whichever limit you hit first, which is why paying down a car loan or credit card can raise your budget as much as a raise would.
Worked example
Take a household earning 90,000 dollars a year, or 7,500 dollars a month, with 500 dollars in monthly debt payments and 40,000 dollars for a down payment. The 28 percent front-end limit allows about 2,100 dollars for housing, while the 36 percent back-end limit allows 2,700 dollars total debt, leaving 2,200 dollars for housing after the existing 500 dollars. At a 6.5 percent rate over 30 years, and after setting aside part of that budget for taxes, insurance, and PMI, this points to a home price in the mid 300,000 dollar range. Adjust the rate, down payment, or debts and the range moves immediately.
Frequently asked questions
How much house can I afford on my income?
A common guideline is that your home price lands around 3 to 5 times your annual gross income, but the accurate answer comes from your debt-to-income ratios. Lenders cap your housing payment near 28 percent of gross monthly income and your total debt near 36 to 43 percent. This calculator applies those limits along with taxes, insurance, HOA, and PMI to show a realistic price range rather than a single rule of thumb.
What percentage of income should go to a mortgage?
The classic 28/36 rule suggests no more than 28 percent of gross monthly income on housing and no more than 36 percent on total debt. FHA loans allow more room, often 31 percent front-end and up to 43 to 50 percent back-end with compensating factors. Staying under these limits protects your monthly budget and improves your odds of loan approval.
Does my down payment change how much house I can afford?
Yes. A larger down payment lowers your loan amount and monthly payment, which lets a given income support a higher purchase price. Putting 20 percent down also removes private mortgage insurance, freeing up more of your payment budget for principal and interest. This calculator lets you adjust the down payment to see the price range move in real time.
What costs beyond principal and interest affect affordability?
Property taxes, homeowners insurance, HOA dues, and PMI all count toward the housing payment lenders measure against your income. In high-tax or high-insurance areas these can add hundreds of dollars a month and meaningfully lower the price you qualify for. Because this calculator includes all of them, its estimate is closer to what a lender will actually approve.
What credit score do I need to buy a house?
Conventional loans typically want a score around 620 or higher, while FHA loans can go lower, often to 580 with a 3.5 percent down payment. A higher score generally earns a lower interest rate, which lowers your monthly payment and raises how much house you can afford. Affordability depends on the rate you qualify for, so improving your score before applying can expand your budget.
Related calculators
- Mortgage Calculator: monthly payment and amortization
- DTI Calculator: check your debt-to-income ratio
- Down Payment Calculator: plan your cash to close
- Closing Costs Calculator: budget the fees at closing
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