Finance
Instant, private, and free
Home Affordability Calculator.
Calculate how much house you can afford based on income and debts
Set your values
Results update as you type.
Your finances
Include car loans, student loans, credit card minimums, and other recurring debt — but not rent or your future mortgage.
Property details
Maximum home price
$322,340Budget insight
At this home price, your total monthly debt payments would come to a debt-to-income ratio of 34.0%.
FAQs
What is the 28/36 rule?
It is a common lender guideline: you should spend no more than 28% of your gross monthly income on housing costs, and no more than 36% on total debt payments (including mortgage, car loans, etc.).
What is Debt-to-Income (DTI) ratio?
DTI is your total monthly debt payments divided by your gross monthly income. Most conventional loans require a DTI below 43%, though some government programs go higher.
Does this include property taxes and insurance?
Yes, our calculator estimates property taxes and homeowners insurance to give you a more accurate picture of your total monthly housing payment.
How to Use the Home Affordability Calculator
Determining your budget is the first step in the home-buying process. This calculator uses professional lending standards (DTI ratios) to help you understand what mortgage you can realistically handle.
- Enter your annual household gross income before taxes.
- Input your total monthly debt payments (car loans, student loans, credit card minimums).
- Set your intended down payment amount.
- Input the current market interest rate and desired loan term.
- Review the maximum home price and estimated monthly payment breakdown.
How Home Affordability is Determined
Lenders primarily use two Debt-to-Income (DTI) ratios to determine how much they will lend you.
Front-End Ratio (28% Rule)
Generally, your mortgage payment (PITI) shouldn't exceed 28% of your gross monthly income.
Example:
Input: $8,000 monthly income
Calculation: $8,000 × 0.28
Result: $2,240 max housing payment
Back-End Ratio (36% Rule)
Your total monthly debt obligations shouldn't exceed 36% to 43% of your gross income.
Example:
Input: $8,000 income, $500 other debts
Calculation: ($8,000 × 0.36) - $500 = $2,880 - $500
Result: $2,380 max mortgage payment
When to Check Your Affordability
Keep your budget updated as market conditions and your finances change.
Before Getting Pre-Approved
Run these numbers yourself so you approach lenders with a realistic budget in mind, not just what they are 'willing' to lend you.
When Interest Rates Shift
A 1% change in interest rates can significantly impact your buying power. Use this to see how rate hikes affect your target home price.
Planning a Career Change
If you're considering a higher or lower-paying job, see how it will affect your ability to stay in your current home or buy a new one.
Tips for Home Buyers
Tips
- Don't spend up to your absolute maximum - leave room for 'lifestyle' expenses like travel and dining.
- Lenders may approve you for more than you're comfortable paying. Trust your own budget.
- Remember to factor in closing costs (2-5% of home price) in addition to your down payment.
- Improving your credit score before buying can significantly lower your interest rate and increase affordability.
- A 20% down payment avoids Private Mortgage Insurance (PMI), lowering your monthly cost.
Common Mistakes to Avoid
- Ignoring the impact of property taxes and insurance on the monthly payment.
- Only considering the mortgage payment and forgetting about home maintenance and repairs.
- Buying at the absolute top of your budget without an emergency fund.
- Taking on new debt (like a car loan) shortly before applying for a mortgage.
Related Resources
Related Calculators
Cite this calculator
Canonical URL: https://mathify.one/en/finance/home-affordability
Cite as: Mathify. (2026). Home Affordability Calculator. https://mathify.one/en/finance/home-affordability
Use Cases
Plan your home search budget
Determine a realistic price range before browsing listings, so you focus on homes you can afford.
Example: Input $80,000 income and $500 monthly debts to see a max home price.
Compare affordability scenarios
Adjust down payment or debt levels to see how they affect your buying power.
Example: Increase down payment from 10% to 20% to see a higher price range.
Frequently Asked Questions
- How does the home affordability calculator work?
- It uses your income and debts to estimate a comfortable home price range, typically by applying a debt-to-income ratio and down payment assumptions.
- What inputs do I need to use this calculator?
- You'll need your gross annual income, monthly debt payments, down payment amount, and possibly interest rate and loan term to get an estimate.
- Is the result a guaranteed loan approval amount?
- No, it's an estimate. Lenders consider additional factors like credit score, assets, and exact debt ratios, so final approval may differ.
Tips & Common Mistakes
Tips
- Enter your gross annual income (before taxes) for accuracy.
- Include all monthly debt payments like car loans, student loans, and credit card minimums.
- Consider a down payment of at least 20% to avoid private mortgage insurance (PMI).
- Use the result as a starting point, then get pre-approved by a lender.
Common Mistakes to Avoid
- Forgetting to include all monthly debts, which can overestimate affordability.
- Using net income instead of gross income, leading to a lower estimate.
- Ignoring additional homeownership costs like property taxes, insurance, and maintenance.
Last updated: August 13, 2026