Home Affordability Calculator
Estimate how much house you can afford based on your income, debts, down payment, and interest rate.
Published by:
isCalculator Editorial Team
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How to use this tool?
How to Use the Home Affordability Calculator
This calculator uses the 28/36 rule to determine the maximum home price you can afford based on your income, debts, and housing costs.
- Enter your annual income (e.g., 80000 for $80,000).
- Enter your monthly debts (e.g., 500 for $500 in car loans, credit cards, etc.).
- Enter your down payment (e.g., 20000 for $20,000).
- Enter the interest rate as a percentage (e.g., 6.5 for 6.5%).
- Enter the loan term in years (e.g., 30).
- Enter the property tax rate as a percentage of the home's value (e.g., 1.2 for 1.2%).
- Enter the insurance rate as a percentage (e.g., 0.5 for 0.5%).
- Enter monthly HOA fees (e.g., 100 for $100).
- Click Calculate to see your maximum affordable home price, monthly payment, down payment, and loan amount.
Tip: All monetary values are in US dollars. Ensure all inputs are positive numbers where applicable. The calculator validates inputs and will show errors if values are out of range.
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Frequently Asked Questions
We use the 28/36 rule: your monthly housing costs should not exceed 28% of your gross monthly income, and total debt payments should not exceed 36%. The calculator finds the highest home price that keeps you within these limits.
You need your annual income, monthly debts, down payment, interest rate, loan term, property tax rate, insurance rate, and HOA fees.
Yes, you can adjust the loan term from 1 to 40 years. A longer term lowers monthly payments but increases total interest.