Home Affordability Calculator
Maximum home price from your income, debts and down payment.
Loan term
Affordability rule
Your result
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Enter your numbers to see the result.
This home affordability calculator estimates the most you could spend on a home based on your income, existing debts, down payment and mortgage rate. It includes property tax, homeowners insurance, HOA dues and private mortgage insurance (PMI) when you put down less than 20%, and lets you choose the conservative 28/36 rule or a stretch limit of 43% total DTI.
What is a Home Affordability Calculator?
Home affordability is the price of home you can buy while keeping your monthly payment within a safe share of income. Lenders look at your gross income, existing debts, down payment, credit and the interest rate, and they include property tax and insurance in the payment, not just the loan.
A common guideline is the 28/36 rule: spend no more than 28% of gross monthly income on housing and no more than 36% on all debts combined. Many lenders approve up to 43% or more, but that leaves less room for savings and surprises. This home affordability calculator works backwards from your budget to the highest price that fits.
How does the Home Affordability Calculator work?
The calculator first sets your monthly housing budget. Under the 28/36 rule it is the lower of 28% of gross monthly income and 36% minus your current debt payments; under the stretch rule it is 43% minus your debts. It then searches for the highest price at which principal, interest, property tax, insurance, HOA dues and PMI together equal that budget. PMI is added when your down payment is less than 20% of the price.
How to use the Home Affordability Calculator step by step
- Enter your annual gross household income.
- Enter the monthly debt payments that will continue after you buy.
- Enter your down payment and expected mortgage rate and term.
- Adjust property tax, insurance, HOA and PMI for your area.
- Choose the 28/36 or 43% rule.
- Read the price and the monthly breakdown, then compare with listings.
Home Affordability Calculator example with real numbers
A couple earns $100,000 a year, pays $500 a month on a car loan and has $60,000 saved for a down payment. They expect a 6.5% rate on a 30-year mortgage, 1.1% property tax and $1,800 a year for insurance, and want to stay within the 28/36 rule.
| Example input | Value |
|---|---|
| Annual gross household income | $100,000 |
| Monthly debt payments (car, student, cards) | $500 |
| Down payment available | $60,000 |
| Mortgage interest rate | 6.5% |
| Loan term | 30 years |
| Property tax rate (yearly, of price) | 1.1% |
| Homeowners insurance (yearly) | $1,800 |
| HOA dues (monthly) | $0 |
| PMI rate if under 20% down (yearly) | 0.5% |
| Affordability rule | 28/36 (conservative) |
| Example output | Value |
|---|---|
| Home price you can afford | $338,000 |
| Loan amount | $278,000 |
| Down payment | $60,000 (17.8%) |
| Principal and interest | $1,757 |
| Property tax | $310 |
| Insurance and HOA | $150 |
| PMI | $116 |
| Total monthly payment | $2,333 |
| Back-end DTI at this price | 34.0% |
The home affordability calculator shows they can afford a home of about $338,000, with a total monthly payment of $2,333. A loan of $278,000 means principal and interest of $1,757 a month.
Key features of this Home Affordability Calculator
- 28/36 rule and 43% DTI options
- Property tax, insurance and HOA
- Automatic PMI under 20% down
- 15 and 30-year terms
- Monthly payment breakdown
Who should use the Home Affordability Calculator?
Who is this Home Affordability Calculator for?
- First-time home buyers
- Renters planning to buy
- Couples setting a house budget
- Move-up buyers
Practical use cases
- Setting a search price range
- Seeing how a bigger down payment changes the price
- Comparing 15 and 30-year loans
- Testing the effect of paying off a car loan first
Key benefits
- Complete: taxes, insurance, HOA and PMI.
- Two rules: safe and stretch.
- Backwards: starts from your budget, not a list price.
- Private: nothing leaves your browser.
Tips for better results
- Get a rate quote from a lender; a one-point change in rate moves the price a lot.
- Check the actual property tax rate for the county you are looking in.
- Keep cash for closing costs and three to six months of expenses.
- A 20% down payment avoids PMI on a conventional loan.
Common mistakes to avoid
- Budgeting on take-home pay instead of gross income without adjusting the rule.
- Ignoring property tax and insurance.
- Spending the whole down payment fund and leaving nothing for closing costs.
- Assuming the pre-approval amount is what you should spend.
Limitations of this Home Affordability Calculator
- FHA, VA and other programs have their own rules and mortgage insurance.
- Insurance and tax vary widely by location.
- It does not include closing costs, maintenance or utilities.
Home Affordability Calculator vs other ways to calculate
| Rule | Housing share | Total debt share |
|---|---|---|
| 28/36 rule | 28% | 36% |
| Stretch (many lenders) | No fixed cap | 43% |
| Some programs | Varies | Up to about 50% |
Check your current ratio with the debt-to-income calculator, then price a specific home with the mortgage calculator.
Privacy and data handling
This Home Affordability Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
Home Affordability Calculator FAQs
How much house can I afford on a $100,000 salary?
Under the 28/36 rule, with $500 of other debts, $60,000 down and a 6.5% rate, roughly the price shown in the example above. Your figure depends on rate, taxes and debts.
What is the 28/36 rule?
Keep housing costs at or below 28% of gross monthly income and total debt payments at or below 36%.
Does the calculator include PMI?
Yes. It adds PMI at the rate you enter whenever the down payment is under 20% of the price.
Should I spend the maximum I qualify for?
Not necessarily. Leave room for savings, repairs and changes in income.
Do closing costs affect affordability?
Yes. They are paid in cash at closing, usually 2% to 5% of the price, so set them aside separately.
Is a 15-year loan more affordable?
It has a higher monthly payment, so the affordable price is lower, but you pay far less interest.
Related tools
Sources and references
We checked the method and the current figures used in this Home Affordability Calculator against these official and primary sources:
- Consumer Financial Protection Bureau
- CFPB: Owning a home
- HUD: Buying a home
- CFPB: What is a debt-to-income ratio?
Written and reviewed by the Qorico Team
