How Much House Can I Afford?
Use our free online Home Affordability Calculator to perform fast, accurate calculations with instant formulas, step-by-step arithmetic, and verified reference benchmarks.
Home Affordability Calculator
Instant Live Computation • Zero Waiting
Adjust inputs on the left for instantaneous live computation.
How to Calculate: The Home Affordability Calculator Formula
Uses standard underwriting 28/36 Debt-to-Income (DTI) ratio rules to determine maximum sustainable monthly housing budget and loan size.
Step-by-Step Calculation Guide
- Input gross annual household income.
- Enter existing monthly debt payments (car loans, student loans, minimum credit cards).
- Specify available cash for down payment.
- Review estimated maximum home purchase price and safe monthly housing budget.
Practical Home Affordability Calculator Examples
Income: $100,000/yr ($8,333/mo). Debts: $400/mo. Down payment: $50,000. Interest: 6.5%.
Income: $150,000/yr ($12,500/mo). Debts: $200/mo. Down payment: $100,000. Interest: 6.5%.
Home Affordability Benchmark by Annual Income (6.5%
Official reference values and benchmark classifications based on standard institutional guidelines.
| Annual Income | Low Debt ($200/mo) | Moderate Debt ($600/mo) | High Debt ($1,200/mo) |
|---|---|---|---|
| $60,000 / yr | $235,000 | $205,000 | $155,000 |
| $80,000 / yr | $325,000 | $295,000 | $240,000 |
| $100,000 / yr | $410,000 | $375,000 | $320,000 |
| $150,000 / yr | $625,000 | $585,000 | $530,000 |
| $200,000 / yr | $840,000 | $795,000 | $740,000 |
Frequently Asked Questions about Home Affordability Calculator
What is the 28/36 rule in mortgage qualification?
The rule states housing expenses (PITI) should not exceed 28% of gross monthly income, and total debt payments (housing + student + car + credit cards) should not exceed 36%.
What does PITI stand for?
PITI stands for Principal, Interest, Property Taxes, and Homeowners Insurance—the four components making up your total monthly housing obligation.
How do property taxes impact home affordability?
High property tax areas (e.g. 2%+ annually in NJ, IL, TX) significantly increase monthly escrow obligations, reducing the maximum purchase price you qualify for.
Can you get approved with a DTI higher than 36%?
Yes. Conventional loans frequently approve borrowers up to 43% to 45% DTI with strong credit scores, and FHA loans can extend up to 50% in select cases.