Example 1
$90,000 income, $600 debt
Gross monthly income is $7,500. A 36% limit leaves about $2,100 for housing at 6.5% interest.
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Home Affordability Calculator
Find out how much house you can afford. Enter your income, monthly debts, and down payment to see your maximum home price and estimated monthly payment.
Your finances
Enter your income and debts to see what you can afford.
$
$
Car loans, student loans, credit cards
$
%
%
Annual, as % of home value
Max home price
$338,912
Est. monthly mortgage payment
$2,200
Maximum loan amount
$298,912
Debt-to-income ratio
36.0%
Monthly income required
$7,500
Monthly payment breakdown
Based on a 30-year loan at 6.5%
| Item | Monthly amount |
|---|---|
| Principal & interest | $1,889 |
| Property tax | $311 |
| Total monthly payment | $2,200 |
Calculator guide
How It Works
The calculator converts annual income into gross monthly income, then applies debt-to-income limits to find the largest housing payment your income can support after existing debts. It sets aside an estimated monthly property tax amount, then works the mortgage formula backward to find the biggest loan that payment covers. Adding your down payment gives the estimated maximum home price.
Annual income is gross pay before taxes. Monthly debt includes required payments like car loans, student loans, and card minimums. Down payment is cash applied to the purchase. Loan term and interest rate decide how much principal each payment dollar supports, and property tax is part of the true monthly cost of owning. These inputs mirror what lenders review, so the result helps you set a realistic price range before applying for a loan and avoid falling in love with a home you cannot comfortably finance.
For a deeper explanation, read How to Calculate Your Debt-to-Income Ratio.
What the Numbers Mean
- Maximum affordability
- The estimated top home price. A higher result means more capacity, not a recommendation to spend it all.
- Monthly payment
- Projected housing cost. If it feels tight next to take-home pay, aim lower.
- Maximum loan
- Largest mortgage supported. Rates and debt reduce it quickly.
- Debt-to-income ratio
- Share of gross income going to debt. Around 36% or below is comfortable; above 43% can make approval and repayment harder.
- Income required
- Earnings needed for the payment. Higher than your income signals a stretch.
Common Scenarios
Example 2
Paying off a car first
Clearing a $450 car payment frees $450 of debt room, raising the supported loan by roughly $70,000 at 6.5%.
Example 3
Rates rise to 7%
The same payment supports a smaller loan, lowering the maximum price.
Frequently Asked Questions
How much income does it take to afford a home?
Lenders typically look for housing costs to stay under 28-30% of gross monthly income. This calculator uses that guideline along with debt and down payment inputs to estimate an affordable price range.
Does my existing debt affect how much home I can afford?
Existing debt payments factor into the debt-to-income ratio lenders use, which lowers the affordable home price as debt increases. Paying down debt before applying can raise the affordable range.
What role does the down payment play in affordability?
A larger down payment raises the affordable home price since it reduces the loan amount needed. It also improves the chances of avoiding PMI costs.
Does this calculator account for closing costs?
The calculator focuses on monthly affordability based on income and debt, and closing costs typically require separate budgeting of 2-5% of the home price.
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