Finance
Home Affordability Calculator
Estimate how much home you can afford
The 28/36 Rule
28%
Front-End Ratio
Housing costs to income
36%
Back-End Ratio
Total debt to income
Affordability Categories
Conservative:<20% / <28%
Comfortable:20-28% / 28-36%
Stretched:28-33% / 36-43%
Risky:>33% / >43%
Monthly Payment (PITI)
PPrincipal
IInterest
TProperty Taxes
IInsurance
PMI is added if down payment is less than 20%
What is Home Affordability?
Home affordability calculations help determine how much house you can reasonably purchase based on your income, debts, and available down payment. Lenders use debt-to-income ratios to assess your ability to make monthly payments while maintaining financial stability.
How to Use This Calculator
- Enter your gross income (before taxes)
- Add your monthly debt payments
- Specify your down payment amount or percentage
- Enter the current mortgage interest rate
- Select your preferred loan term
- Optionally adjust property tax and insurance estimates
Tips for Home Buying
- Save at least 20% for down payment to avoid PMI
- Keep emergency fund separate from down payment
- Factor in closing costs (2-5% of home price)
- Consider maintenance costs (1% of home value/year)
- Get pre-approved before house hunting
Important Disclaimer
Home affordability calculations are estimates and may vary based on local taxes, insurance, and lender requirements. Actual qualification depends on credit score, employment history, and other factors. Consult a mortgage professional for personalized advice.