Home Buying
House Affordability Calculator
Determine how much house you can afford based on your income, debts, and savings.
Income
Annual Gross Income
$
Total household income before taxes
Monthly Debt Payments
$
Car loans, student loans, credit card payments, etc.
Savings & Costs
Down Payment
$
Amount you have saved for a down payment
Interest Rate
%
Current mortgage interest rate
Loan Term
years
Number of years to repay the mortgage
Property Tax Rate
%
Annual property tax as % of home value
Annual Home Insurance
$
Annual homeowners insurance premium
Monthly HOA Fees
$
Monthly homeowners association fees (if applicable)
Debt-to-Income
0%
You Can Afford
$0
maximum home price
Max Monthly Payment
$0
Front-End DTI Ratio
0%
Back-End DTI Ratio
0%
Loan Amount Needed
$0
📊 Detailed Breakdown
| Category | Amount | % of Income |
|---|
How the formula works
Max House Price = Down Payment + Max Loan Amount | Max Loan = Monthly Payment × PV Factor
- Gross Monthly Income = Annual Income ÷ 12
- Max Monthly Payment (28% Rule) = Gross Monthly Income × 28%
- Max Total Debt Payment (36% Rule) = Gross Monthly Income × 36%
- Max Mortgage Payment = Min(28% Rule Payment, (36% Rule Payment − Monthly Debt))
- Max Loan Amount = Present Value of Mortgage Payments
- Max House Price = Max Loan Amount + Down Payment
- Front-End DTI = (Monthly Housing Cost ÷ Monthly Income) × 100
- Back-End DTI = ((Monthly Housing Cost + Monthly Debt) ÷ Monthly Income) × 100