Home Affordability Calculator

Home Affordability Calculator

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

Annual Household Income

$

Monthly Debts (car, student loans, etc.)

$

Down Payment

$

Interest Rate (%)

%

Loan Term

Property Tax Rate (%)

%

You Can Afford a Home Up To

$253,091

$1,750/month | DTI: 34.4%

Loan Amount

$213,091

Principal & Interest

$1,347/mo

Property Tax

$253/mo

Down Payment

$40,000

The 28/36 Rule

Lenders use the 28/36 rule to determine how much you can borrow:

28% rule — Your total housing costs (mortgage + taxes + insurance) should not exceed 28% of your gross monthly income
36% rule — Your total debt payments (housing + car + student loans + credit cards) should not exceed 36% of your gross monthly income

Our calculator uses both rules and shows you the lower (more conservative) result.

What Affects How Much You Can Afford?

Income — Higher income = larger mortgage approval
Existing debts — Car payments, student loans, and credit cards reduce your borrowing power
Down payment — A larger down payment means you can afford a more expensive home
Interest rate — Even a 0.5% rate difference changes your purchasing power by $20,000-$40,000
Property taxes — Vary widely by state (0.3% in Hawaii to 2.5% in New Jersey)

How Much Down Payment Do You Need?

Conventional loan — 5-20% down (20% avoids PMI)
FHA loan — 3.5% minimum down payment
VA loan — 0% down for eligible veterans
USDA loan — 0% down for eligible rural areas

Use our Mortgage Calculator to see your exact monthly payment for a specific home price, or our Savings Goal Calculator to plan your down payment savings.