Home Affordability Calculator
Estimate how much house you can afford based on your income, monthly debts, down payment, mortgage rate, taxes, insurance, and HOA fees.
Enter your total gross annual household income before taxes.
Include car loans, student loans, credit cards, and other monthly debt payments.
How This Calculator Works
This calculator estimates affordability using a 36% debt-to-income guideline. It assumes your total monthly debts, including your future housing payment, should not exceed roughly 36% of your gross monthly income.
Formula
Max Housing Budget = (Monthly Income * 36%) - Monthly Debt Payments
Example
If your household earns $120,000 per year, has $800 in monthly debts, a $50,000 down payment, and a 6.5% mortgage rate, you may be able to afford a home around $450,000 to $500,000 depending on taxes, insurance, and HOA fees.
Frequently Asked Questions
How much income should go toward housing?
Many lenders use a debt-to-income ratio of around 36%, meaning all monthly debts including housing should stay below 36% of gross income.
Does this include taxes and insurance?
Yes. Property taxes, home insurance, and HOA fees can all reduce the amount of home you can realistically afford.
Why does debt affect affordability?
Existing debt payments reduce the amount of your income available for a future mortgage payment.
Should I spend the maximum amount I can afford?
Not always. Many people prefer to stay below the maximum to allow room for savings, emergencies, childcare, travel, or other goals.