fincalculator
House Affordability Calculator
Use this free House Affordability Calculator to find out how much home you can afford. Simple, accurate, and easy to use online.
The House Affordability Calculator answers the big question: "How much house can I buy?" It uses standard lender qualification ratios (Front-end 28% / Back-end 36%) to reverse-engineer your maximum home price based on your income and debts.
Instead of guessing a monthly payment, this tool starts with your financial reality—Income, Debts, and Down Payment—to determine your borrowing ceiling.
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INPUT VALUES
House Affordability Calculator
The House Affordability Calculator answers the big question: "How much house can I buy?" Instead of guessing, it uses your income, monthly debts, and down payment savings to calculate a responsible purchase price. It follows banking guidelines like the 28/36 rule to ensure you don't become 'house poor'.
This is the first tool you should use before looking at listings.
Why You Need This Tool
- Realistic BudgetingAlign your home search with what lenders will actually approve.
- Debt ImpactSee how your car payment or student loans reduce your buying power.
- Stress TestingCheck affordability at different interest rates.
The Mathematics Behind It
How to Use This Calculator
Your gross household income before taxes.
Minimum payments for credit cards, loans, etc.
Cash available for the purchase.
Expected mortgage rate.
Understanding Your Results
Maximum Home Price
The most expensive home you should consider.
Conservative Budget
A safer, more comfortable price range.
DTI Check
Shows your debt-to-income ratio.
Common Mistakes to Avoid
- Using Net instead of Gross Income: Lenders look at Gross (pre-tax) income. Use that for accurate results.
- Forgetting Closing Costs: Save 2-5% extra for closing costs, don't use your entire cash pile for the down payment.
Frequently Asked Questions
What is the 28/36 rule?
Housing costs shouldn't exceed 28% of income, and total debt shouldn't exceed 36%.
Will lenders approve more?
Sometimes, but stretching your budget increases financial risk.