Home Affordability Calculator
Find out how much home you can afford based on your income, debts, and down payment. Uses the 28/36 DTI rule that lenders apply to determine your maximum home price.
Income & Debts
Your total household income before taxes
Car loans, student loans, credit cards, etc.
Home Purchase Details
Amount you have saved for a down payment
Current average: around 6-7%
Additional Costs
Annual property tax rate
Homeowners Association dues, if applicable
Enter values and click Calculate to see results
How the Home Affordability Calculator Works
This calculator uses the 28/36 rule, a widely-used guideline that lenders apply to determine how much mortgage you can qualify for. It considers two debt-to-income (DTI) ratios:
Max Housing = 28% × Gross Monthly Income28%= Front-end ratio — max housing costs as % of gross income36%= Back-end ratio — max total debt as % of gross incomeHousing= Mortgage P&I + property tax + insurance + HOATotal Debt= Housing costs + car loans + student loans + credit cardsThe calculator shows you the maximum home price under each rule and recommends the lower (more conservative) of the two. This ensures you won't be stretched too thin financially.
Example Scenarios
Single Income ($75K)
At $75K income with modest debts, you can afford a home around $270K with $40K down.
Dual Income ($150K)
Dual income with $100K down opens the door to homes in the mid-$500K range.
High-Debt Scenario
High monthly debts ($1,200) significantly reduce affordability. Paying down debt first could add $100K+ to your budget.
Tips for Improving Affordability
- Pay down existing debts to lower your back-end DTI ratio
- Save a larger down payment to reduce the loan amount
- Improve your credit score to qualify for a lower interest rate
- Consider a longer loan term (30 years) for lower monthly payments
- Look for areas with lower property tax rates
- Shop around for competitive homeowners insurance rates