Home Affordability Calculator
Estimate a realistic maximum home price you can afford (includes iterative tax & insurance adjustment)
How it works
This calculator estimates the highest home price you can afford based on income, monthly debts, down payment, interest rate and loan term. It uses a common housing ratio (default 28%) and accounts for property tax and insurance in an iterative calculation for a practical estimate.
Quick tips
- Enter accurate monthly debt payments (car loan, minimum credit card, student loans).
- Use current mortgage interest rate offers for the best estimate.
- Adjust the front-end ratio if you want a more conservative or aggressive affordability rule.
This tool provides estimates for planning only. For exact pre-approval amounts consult a mortgage lender.
Home Affordability Calculator
Buying a home is one of the most important financial decisions you’ll ever make — and knowing exactly how much you can afford helps you plan with confidence. Our Home Affordability Calculator makes it simple to estimate a realistic home price based on your income, monthly debts, loan terms, and down payment.
How the Home Affordability Calculator Works
This tool uses common financial formulas and housing affordability rules to give you a quick estimate of your maximum affordable home price. Simply enter your annual or monthly income, average monthly debts, down payment amount, interest rate, loan term, and property tax or insurance costs.
The calculator then determines the total monthly housing cost you can safely manage — including principal, interest, taxes, and insurance (PITI). By comparing your income and debt ratio, it calculates an estimated home price that fits within your budget and financial comfort zone.
Why Home Affordability Matters
Understanding how much house you can afford prevents over-borrowing and financial stress later. Lenders typically follow the 28/36 rule, meaning your total monthly housing expenses shouldn’t exceed about 28% of your gross income. Our calculator follows a similar approach, giving you a practical estimate before you speak with a mortgage lender or real-estate agent.
Tips for Accurate Results
- Use your gross (before-tax) income for the most reliable estimate.
- Include all monthly debts such as car loans, student loans, or credit cards.
- Update the interest rate to reflect current mortgage offers in your area.
- Adjust the down payment amount to see how it impacts affordability.
Plan Your Next Step
The Home Affordability Calculator is a helpful starting point to plan your home-buying journey. Once you have an estimate, compare it with current home listings and connect with a trusted lender for pre-approval.