House Affordability Calculator - How Much House Can I Afford?

Calculate how much house you can afford based on income, debts, and down payment. Free home affordability calculator with DTI ratios, PMI, and total monthly housing costs.

Last updated: 1/27/2025

What would you like to calculate?

Calculate the maximum house price you can afford based on your income and debts

Calculation Settings

DTI Ratio:

Annual Income

$

Additional Monthly Income

$

Monthly Debt Payments

$
$
$
$

Down Payment

Available Cash

$

Loan Term

Interest Rate (%)

%

Property Tax Rate (%)

%

Insurance Rate (%)

%

PMI Rate (%)

%

House Affordability Results

Enter your income and debt information to see how much house you can afford

Home Buying Tips

Get Pre-approved: Get a mortgage pre-approval letter before house hunting

Save for Closing: Budget 2-5% of home price for closing costs

Emergency Fund: Keep 3-6 months expenses after home purchase

Consider All Costs: Include maintenance, utilities, and property taxes

Shop Around: Compare rates from multiple lenders

How to Use Our House Affordability Calculator

Determine how much house you can afford with our comprehensive calculator. Get realistic home price estimates based on your income, debts, and down payment capacity.

1

Enter Income & Debts

Input your gross income, additional income sources, and all existing monthly debt payments for accurate DTI calculations.

2

Set Loan Parameters

Choose your down payment percentage, loan term, interest rate, and local property tax and insurance rates.

3

Review Affordability

See your maximum house price, monthly payments, and DTI ratios to make informed home buying decisions.

The 28/36 Rule

Front-end Ratio (28%)

Your total monthly housing costs (PITI + HOA) should not exceed 28% of your gross monthly income.

Back-end Ratio (36%)

Your total monthly debt payments (housing + all other debts) should not exceed 36% of your gross monthly income.

Why Use Our House Affordability Calculator

Make confident home buying decisions with accurate affordability calculations and comprehensive cost analysis.

Comprehensive DTI Analysis

Uses both front-end and back-end debt-to-income ratios following industry-standard 28/36 rule for realistic affordability.

Complete Cost Breakdown

Includes all housing costs: principal, interest, taxes, insurance, PMI, and HOA fees for accurate monthly budgeting.

Multiple Income Sources

Account for salary, bonuses, commissions, and other qualifying income to maximize your purchasing power.

PMI Calculator

Automatically calculates PMI for down payments under 20% and shows the impact on monthly costs.

Cash Requirement Analysis

Compare required down payment with available cash to ensure you're financially prepared for home purchase.

Lender-Grade Calculations

Uses the same formulas and ratios that mortgage lenders use for pre-qualification and approval decisions.

Frequently Asked Questions

How much house can I afford with my salary?

A general rule is that your housing payment shouldn't exceed 28% of your gross monthly income. For a $60,000 salary ($5,000/month), you could afford about $1,400/month in housing costs, which might qualify you for a $250,000-300,000 home depending on rates and down payment.

What is the 28/36 rule for home buying?

The 28/36 rule states that no more than 28% of gross monthly income should go to housing costs, and no more than 36% should go to total debt payments. This helps ensure you can comfortably afford your mortgage and other financial obligations.

How much should I put down on a house?

While 20% down avoids PMI, many buyers put down less. FHA loans require just 3.5% down, and conventional loans can go as low as 3%. A larger down payment reduces monthly payments and total interest, but consider keeping emergency funds.

What costs are included in monthly housing expenses?

Total monthly housing costs include principal, interest, property taxes, homeowners insurance, PMI (if applicable), and HOA fees. This is often called PITI (Principal, Interest, Taxes, Insurance) plus HOA.

How does my debt-to-income ratio affect home buying?

Lenders typically want your total debt-to-income ratio below 36-43%. This includes your new mortgage payment plus existing debts like car loans, credit cards, and student loans. Lower DTI ratios qualify for better rates and loan terms.

Can I afford a house with student loans?

Yes, but student loans count toward your debt-to-income ratio. Lenders will include your monthly student loan payment in DTI calculations. Consider income-driven repayment plans to lower monthly payments and improve your DTI ratio for home buying.

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