Home Affordability Calculator
How Much House Can I Afford?
Knowing your home buying budget before you start shopping saves time and prevents heartbreak. A home affordability calculator estimates the maximum home price you can handle based on your income, existing debts, down payment, interest rate and the ongoing costs of homeownership like taxes and insurance.
The calculator uses the standard 28/36 rule: your monthly housing costs (mortgage, taxes, insurance, PMI) should stay at or below 28% of your gross monthly income, and your total debt payments should stay at or below 36%. It works backward from those limits to find the home price you can afford.
Frequently Asked Questions
What is the 28/36 rule?
The 28/36 rule says lenders generally want your housing costs to be no more than 28% of your gross monthly income, and your total debt (housing plus car loans, credit cards, student loans) no more than 36%. This calculator applies both limits and uses the stricter one.
How much do I need for a down payment?
A 20% down payment avoids private mortgage insurance (PMI), but many buyers put down less - 5% to 10% is common for first-time buyers, and some programs allow 3% or even 0%. A smaller down payment means a higher monthly payment and PMI.
Does my credit score affect how much I can afford?
Yes. A higher credit score gets you a lower interest rate, which lowers your payment and raises what you can afford. Lenders also use your score to set loan limits, so improving your score before buying is one of the best financial moves.
What costs are included beyond the mortgage?
Property taxes, homeowners insurance, and PMI if your down payment is under 20%. You should also budget for maintenance (often estimated at 1% of home value per year), utilities, and closing costs, which this calculator does not include.