A home affordability calculator tells you the maximum home price you can qualify for based on your income, monthly debts, and down payment. Lenders use the 28/36 rule — your monthly housing costs (PITI: principal, interest, taxes, and insurance) should stay at or below 28% of your gross income, and your total debt payments should stay below 36%. Use this free calculator to find your comfortable and stretch price ranges before you start house hunting.
Your Financial Details
Your total household income before taxes
Car loans, student loans, credit cards (minimums)
Cash available for down payment
30-year fixed mortgage rate
Annual property tax as % of home value
Annual homeowners insurance premium
Monthly homeowners association fees (if applicable)
Maximum Home Price
Based on 28% front-end ratio
Comfortable Budget
25% front-end ratio
Stretch Budget
28% front-end ratio
Monthly Payment Breakdown
At maximum home price
Debt-to-Income Ratios
Target: ≤ 28%
Target: ≤ 36%
Enter your details and click Calculate Affordability to see how much house you can afford.
How to Use the Home Affordability Calculator
The home affordability calculator uses the industry-standard 28/36 qualifying ratios — the same guidelines mortgage lenders apply when reviewing your loan application. By entering a few key financial figures, you get an instant estimate of the maximum home price you can realistically qualify for, along with a full breakdown of what your monthly payment would look like.
Step 1: Enter Your Annual Gross Income
Start with your total household gross income — the amount you earn before taxes. If you are applying with a co-borrower (spouse, partner), add both incomes together. Use your base salary; lenders are often conservative about including bonuses or commission unless they are consistent over two or more years.
Step 2: Add Your Monthly Debt Payments
Enter the total of your current minimum monthly debt obligations — car loans, student loans, credit card minimum payments, and any other installment loans. Do not include utility bills, subscriptions, or groceries. These existing debts reduce how much of your income is available for housing, directly affecting your back-end (36%) qualifying ratio.
Step 3: Enter Your Down Payment
Enter the cash amount you plan to put down. A larger down payment reduces the loan amount needed, which lowers your monthly payment and allows you to afford a higher-priced home. If your down payment is 20% or more of the home price, you avoid Private Mortgage Insurance (PMI), which can save $100–$300 per month. Note: this calculator does not include PMI — if you're putting down less than 20%, factor in an additional $50–$200/month.
Step 4: Set the Interest Rate
Use the current 30-year fixed mortgage rate. You can find today's rates on lender websites or financial news sources. For conservative budgeting, use a rate that is 0.25–0.5% higher than current rates to build in a cushion. Even a small rate difference significantly affects your maximum home price — a 1% rate increase on a $400,000 loan adds roughly $240/month to your payment.
Step 5: Adjust Property Tax, Insurance, and HOA
Property tax rates vary widely by location — the national average is about 1.1%, but rates range from under 0.5% (Hawaii) to over 2% (Illinois, New Jersey). Homeowners insurance averages $1,200–$2,000 per year nationally. If you are looking at a condo or planned community with HOA fees, enter the monthly amount — these count toward your front-end housing ratio. Adjusting these inputs to match your target location gives you the most accurate affordability estimate.
Understanding Your Results
The calculator shows two home price ranges: comfortable (25% front-end ratio) and stretch (28% front-end ratio). The comfortable range leaves more room in your budget for savings, repairs, and lifestyle costs — most financial advisors recommend targeting this range to avoid being house-poor. The stretch budget uses the maximum the lender will typically allow. The monthly payment breakdown shows exactly how each dollar is allocated across principal and interest, property tax, insurance, and HOA fees.
For a detailed walkthrough, see our guide: How Much House Can I Afford in 2026?.
FAQ
What is the 28/36 rule for home affordability?
The 28/36 rule is the standard guideline used by lenders to assess mortgage eligibility. It states that your monthly housing costs (principal, interest, taxes, and insurance — PITI) should not exceed 28% of your gross monthly income (front-end ratio), and your total monthly debt payments including the mortgage should not exceed 36% of gross income (back-end ratio). Staying within both limits greatly improves your chance of loan approval.
Is this home affordability calculator free?
Yes, this tool is completely free with no signup, no account, and no hidden fees. All calculations run locally in your browser — your financial information is never sent to any server.
Is my financial information safe?
Absolutely. This calculator runs entirely in your web browser using client-side JavaScript. No data you enter is transmitted to any server or stored anywhere. You can verify this by disconnecting from the internet — the calculator will continue to work perfectly.
What does PITI stand for?
PITI stands for Principal, Interest, Taxes, and Insurance — the four components that make up a typical monthly mortgage payment. Principal reduces the loan balance, interest is the cost of borrowing, taxes are property taxes (usually escrowed monthly), and insurance covers homeowners insurance (and PMI if applicable). Lenders use total PITI to calculate your front-end debt-to-income ratio.
What is the difference between comfortable and stretch budget?
The comfortable budget uses a 25% front-end ratio, giving you breathing room for savings, emergencies, and lifestyle costs. The stretch budget uses the full 28% front-end ratio — you qualify for more house but your budget is tighter. Most financial advisors recommend targeting the comfortable range to avoid being house-poor.
How does a down payment affect how much house I can afford?
A larger down payment reduces the loan amount you need to finance, which lowers your monthly principal and interest payment. This allows you to afford a higher-priced home while staying within the 28% front-end ratio. A down payment of 20% or more also eliminates the need for Private Mortgage Insurance (PMI), further reducing your monthly costs.
What interest rate should I use in this calculator?
Use the current 30-year fixed mortgage rate as a starting point. You can find today's rates on financial websites or by getting pre-qualified with a lender. Even a 0.5% difference in rate can significantly affect affordability — a higher rate means lower maximum home price. Use conservative (slightly higher) rates to budget safely.