Home Affordability Calculator
Calculate how much house you can afford based on your income and debt
Calculate Home Affordability
Loan Specification
Maximum amount you can afford for housing expenses
Mortgage loan duration (typically 15-30 years)
Annual mortgage interest rate
Home Affordability Results
Payment Breakdown (Monthly)
28/36 Rule Guidelines
Front-End Ratio (≤ 28%)
Housing expenses (PITI) should not exceed 28% of gross monthly income.
Back-End Ratio (≤ 36%)
Total debt payments should not exceed 36% of gross monthly income.
Example Calculation
Sample Buyer Profile
Monthly Income: $8,000
Max Housing Payment: $2,240 (28%)
Current Debt: $400/month
Down Payment: $50,000
Interest Rate: 6.5%
Affordability Result
Available for P&I: $1,640/month
Maximum Loan: ~$262,000
Max Home Value: ~$312,000
Including $50k down payment
Home Buying Tips
Get Pre-Approved
Know exactly how much you can borrow before shopping
Emergency Fund
Keep 3-6 months of expenses saved after closing
Shop Around
Compare rates from multiple lenders to save money
Additional Homeowner Costs
PMI (if down payment < 20%)
HOA fees and special assessments
Utilities and maintenance costs
Moving and setup expenses
Home repairs and improvements
Understanding Home Affordability
How Much Home Can I Afford?
Home affordability depends on your income, debts, down payment, and local market conditions. Lenders typically use the 28/36 rule to determine how much you can borrow safely.
Key Factors
- •Gross monthly income
- •Existing debt obligations
- •Available down payment
- •Credit score and history
Calculation Formula
Max Loan = Payment × [1 - (1 + r)^-n] / r
Max Home = (Max Loan + Down Payment) / (1 + Closing Costs)
Important Ratios
- Front-End Ratio: Housing costs ÷ Gross Income ≤ 28%
- Back-End Ratio: Total Debt ÷ Gross Income ≤ 36%
- Down Payment: Typically 3-20% of home value
- Closing Costs: Usually 2-5% of home value
Note: These are general guidelines. Your specific situation may allow for different ratios.