Free Home Affordability Calculator - How Much House Can You Afford?
Determine how much home you can afford based on your income and debts.
Formula & Methodology
Calculates the maximum housing payment you can afford while maintaining a safe 36% overall debt-to-income ratio, then reverse-engineers the standard mortgage formula to find the corresponding loan amount.
- Max Total Payment = Monthly Income × 0.36
- Max P&I = Max Total Payment - Debts - Taxes - Ins - HOA
- Loan Amount = P&I × [(1 + r)^n - 1] / [r(1 + r)^n]
Worked Example
Using the Mortgage Affordability Calculator: apply the formula above to your input values. For instance, Max Total Payment = Monthly Income × 0.36, then Max P&I = Max Total Payment - Debts - Taxes - Ins - HOA. The tool performs each step instantly and shows the result.
Frequently Asked Questions
How much house can I afford?
It estimates a price range from your income, debts, down payment and rate, keeping your payment within healthy limits.
What debt-to-income ratio do lenders use?
Many aim for a total DTI at or below 43%, with housing costs ideally around 28% of gross income.
Does my down payment change affordability?
Yes. A larger down payment lowers the loan amount and payment, letting you afford a higher purchase price.