Finance

HomeAffordabilityCalculator

Calculate how much home you can afford based on your income, expenses, and down payment.

Financial Details

Your yearly income before taxes

Other monthly debt payments

Cash for down payment

Annual interest rate

Maximum Home Price

$$0

Monthly Payment Breakdown

Affordable Price Range

What is a Home Affordability Calculator?

A Home Affordability Calculator determines how much house you can afford based on your income, expenses, and down payment. It uses the 28% front-end debt-to-income ratio that lenders use to approve mortgages.

This calculator helps you set realistic expectations when house hunting and ensures you don't take on a mortgage that strains your budget.

Understanding Affordability Ratios

28%Front-end Ratio

Housing costs only

36%Back-end Ratio

All debt combined

20%Down Payment

Avoids PMI

Tips to Improve Affordability

1

Increase Down Payment

More down payment means lower loan and no PMI.

2

Reduce Debt

Pay off credit cards before applying.

3

Improve Credit Score

Better score = lower interest rates.

4

Consider Shorter Term

15-year mortgage = faster payoff.

5

Shop Lenders

Rates vary by lender significantly.

6

Get Pre-approved

Know exactly how much you can borrow.

Quick Reference

Front-end 28%

Housing to income ratio

Back-end 36%

All debt to income ratio

PMI

Required under 20% down

Property Tax

1-2% annually

HOA

Community fees

P&I

Principal & Interest