Find out how much house you can afford based on your income, debts, down payment and interest rate.
Rates as of Q2 2025 (example)
A house affordability calculator estimates the maximum home price you can reasonably afford based on your income, existing monthly debts, down payment, and a target debt-to-income ratio. Instead of just showing a mortgage payment for a price you choose, it works backward from your finances to suggest a realistic price range — helping you set expectations before you start house hunting.
The calculator first works out the maximum monthly payment you can take on by applying your debt-to-income ratio to your gross monthly income, then subtracting your existing monthly debts. That maximum payment — covering principal, interest, property tax, insurance, and HOA — is then used to back-calculate the loan amount using the standard mortgage formula, and your down payment is added to estimate the total home price.
Formula (simplified): Max monthly housing payment = (Gross monthly income × DTI ratio) − existing monthly debts. This payment is then converted into a loan amount using M = P × [r(1+r)n] / [(1+r)n − 1] solved for P.
Example: With a $90,000 annual income, $500 in monthly debts, a 36% DTI ratio, a $40,000 down payment, a 30-year term, and a 7.25% interest rate (example rate — enter your actual rate), the calculator estimates an affordable home price in the high $300,000s. (Note: all figures in this example are for illustration purposes only and do not represent actual rates or market conditions.)
US lenders commonly use the "28/36 rule" as a guideline: housing costs should ideally stay under about 28% of gross monthly income, and total debt payments (including housing) under about 36%. This calculator defaults to a 36% DTI ratio, but you can adjust it to match your own comfort level or a specific lender's guidelines. Keep in mind that lenders also weigh your credit score, employment history, and cash reserves — this calculator gives a starting estimate, not a loan approval.
The calculator estimates the maximum monthly payment you can afford based on your income, existing debts, and chosen debt-to-income ratio, then converts that payment into a loan amount and adds your down payment to get an estimated home price.
Many US lenders look for a total DTI ratio (all debts including housing) under about 36%, though some loan programs allow higher ratios. This calculator defaults to 36% but lets you adjust it to see how that changes your estimate.
No. This is an estimate based on the numbers you enter. Actual loan approval and the amount a lender offers depend on your credit score, employment history, assets, and the lender's own underwriting guidelines.
Yes — the calculator factors in your estimated property tax rate, home insurance, and HOA fees as part of your monthly housing cost before estimating the affordable home price.
Your down payment is added directly to the loan amount the calculator estimates you can afford, so a larger down payment increases the total home price you can consider for the same monthly payment.
Mortgage rates vary by lender, loan type, credit score, and market conditions, and change frequently. The default rate is for illustration only — enter the rate from an actual lender quote for a more accurate affordability estimate.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only. All rates and examples shown are sample values and do not reflect current or actual market rates. Financial rules and regulations change frequently. Always consult a qualified financial advisor, tax professional, or lender before making any financial decisions.