🏡 House Affordability Calculator
Lenders look at two limits: housing costs should stay near 28% of gross monthly income, and all debts including housing near 36%. This calculator uses the lower of the two.
How the House Affordability Calculator works
It finds the largest monthly housing payment allowed, subtracts property tax, insurance and HOA, and turns the rest into a loan amount with the standard mortgage formula. Your down payment is added to get the price.
Step-by-step calculation
- 1Enter income, monthly debts and down payment.
- 2Find the 28% housing and 36% total-debt limits.
- 3Subtract taxes and insurance to get the principal-and-interest budget.
- 4Convert that budget into a loan amount and add the down payment.
Worked example
$100,000 income, $500 of other debts, $40,000 down, 6.5% for 30 years and $400 a month of tax and insurance: max housing $2,333, P&I $1,933, loan about $305,900, home price about $345,900.
House Affordability Calculator examples
| Gross yearly income ($) | Home price you can afford |
|---|---|
| 50,000 | $134,926 |
| 75,000 | $253,585 |
| 100,000 | $345,874 |
| 125,000 | $438,164 |
| 150,000 | $530,454 |
Other inputs kept at the calculator's default values. Results calculated by this calculator.
Why use a House Affordability Calculator?
Set a realistic price range before talking to agents or lenders.
Important factors that can affect your results
- Lenders may allow higher ratios for some loans.
- Interest rate changes move the price a lot.
- Leave room for repairs, savings and emergencies.
Frequently asked questions
Is this what a bank will approve?
It is a guideline. Lenders also check credit score, savings and the loan type, and some allow higher ratios.
Should I borrow the maximum?
Not always. Leave room for maintenance, savings and life changes.
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Last reviewed November 2026 · How we build and check our tools · Report a problem