Home Affordability Calculator

Find out how much house you can afford based on your income, debts, and down payment.

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Loan Amount

Annual Interest Rate (%)

Term (Months)

Monthly Payment

$1,896.20

Total Interest

$382,633.47

Total Cost

$682,633.47

Principal (44%)Interest (56%)

$300,000.00$382,633.47

Amortization Over Time

Amortization Schedule

Month	Payment	Principal	Interest	Balance
1	$1,896.20	$271.20	$1,625.00	$299,728.80
2	$1,896.20	$272.67	$1,623.53	$299,456.12
3	$1,896.20	$274.15	$1,622.05	$299,181.97
4	$1,896.20	$275.64	$1,620.57	$298,906.34
5	$1,896.20	$277.13	$1,619.08	$298,629.21
6	$1,896.20	$278.63	$1,617.57	$298,350.58
7	$1,896.20	$280.14	$1,616.07	$298,070.44
8	$1,896.20	$281.66	$1,614.55	$297,788.79
9	$1,896.20	$283.18	$1,613.02	$297,505.60
10	$1,896.20	$284.72	$1,611.49	$297,220.89
11	$1,896.20	$286.26	$1,609.95	$296,934.63
12	$1,896.20	$287.81	$1,608.40	$296,646.82

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Compare Current Rates

Rates shown are for illustration. Compare real offers from lenders to find your best rate.

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What is Home Affordability Calculator?

A home affordability calculator estimates how much house you can buy based on the 28/36 rule — a lending guideline that says your housing costs (mortgage principal, interest, property taxes, and insurance) should not exceed 28% of your gross monthly income, and all monthly debt payments combined (housing plus car loans, student loans, and credit card minimums) should not exceed 36%. Lenders use your debt-to-income ratio to calculate the maximum loan amount they will approve. But qualifying for a loan and comfortably affording it are two different things. Property taxes, homeowner's insurance, HOA fees, maintenance, and utilities are hidden costs that can add $500–$1,500 per month beyond the mortgage payment itself — costs that often surprise first-time buyers.

How to use

Enter your gross annual income — this is your pre-tax salary, not take-home pay, as lenders qualify you on gross income.
Add your total monthly debt payments, including car loans, student loans, and minimum credit card payments. Do not include utilities or groceries.
Enter your planned down payment amount. A larger down payment reduces the loan amount, which reduces the monthly payment.
Input the expected interest rate and loan term (typically 30 years) to reflect realistic market conditions.
Review the estimated maximum home price and monthly payment, then compare the monthly figure to your actual take-home pay to assess comfort.
Adjust inputs to run scenarios — for example, a 1% interest rate increase or a lower down payment — to see how each variable shifts your affordable price range.

Why it matters

Many buyers get pre-approved for the maximum amount a lender will allow and then build their home search around that ceiling — a mistake that can lead to being house-poor. A 1% increase in mortgage rates can reduce affordability by $30,000–$60,000 in purchase price on a typical income. Using this calculator before starting your home search gives you a realistic budget, helps you set down payment savings goals, and prevents the emotional trap of falling in love with homes outside your actual comfortable range. Being conservative here creates the financial breathing room that makes homeownership sustainable long-term.

Pro tip

Lenders qualify you on gross income — your salary before taxes. But your mortgage payments come from your take-home pay. A $100,000 annual salary yields roughly $65,000–$70,000 in take-home pay after federal, state, and FICA taxes. Always verify that your estimated monthly payment is manageable against your net monthly income, not just whether your debt-to-income ratio clears the lender's threshold.

Frequently Asked Questions

The 28/36 rule says your housing costs should not exceed 28% of gross monthly income, and total debt payments (including housing) should not exceed 36%.

Monthly debts include car payments, student loans, credit card minimums, and other installment loans. Do not include utilities or groceries.

Conventional loans typically require 3–20% down. FHA loans require 3.5%. A 20% down payment avoids PMI and results in lower monthly payments.

Not necessarily. Just because you qualify for a large loan doesn't mean you should take it. Consider your savings goals, job security, and lifestyle when choosing a home price.