House Affordability Calculator
Quickly find your House buying budget with our free House Affordability Calculator. Simple, fast, and accurate.
Your finances
Affordable price
What is a House Affordability Calculator?
A House Affordability Calculator estimates the maximum home price you can afford based on your income, existing debts, down payment, and current interest rates. It helps you shop for a home within your realistic budget.
How to calculate house affordability manually (the formula)
Lenders use the 36% DTI guideline: Max Housing Payment = (Gross Monthly Income × 0.36) - Monthly Debts. Then use the mortgage payment formula to solve for the loan amount: Loan = Payment × ((1+r)^n - 1) / (r(1+r)^n). Add your down payment to get the affordable home price.
Example calculation
You earn $90,000/year ($7,500/month) with $400 in monthly debts. Max housing payment = $7,500 × 0.36 - $400 = $2,300. At 6.5% for 30 years, the loan amount is roughly $294,000. With $40,000 down, you can afford about $334,000.
Common mistakes
- Focusing only on the purchase price — Your monthly payment also depends on the interest rate, term, taxes, and insurance — not just the price.
- Ignoring existing debts — Car loans, student loans, and credit cards reduce how much mortgage you can qualify for.
- Not budgeting for maintenance — Budget 1-2% of the home value annually for repairs and upkeep on top of the mortgage payment.
Frequently asked questions
How much house can I afford?
Enter your income, debts, down payment, interest rate, and term. Our calculator uses the 36% DTI guideline to estimate the maximum home price you can afford.
What is the 28/36 rule?
The 28/36 rule says no more than 28% of gross income should go to housing costs, and no more than 36% to total debt payments including housing.
How does my down payment affect affordability?
A larger down payment means a smaller loan, which lowers your monthly payment and increases the home price you can afford.
How does my credit score affect affordability?
A higher credit score qualifies you for a lower interest rate, which reduces your monthly payment and increases your purchasing power.
Is this calculator free?
Yes, completely free with no sign-up required.