Home Affordability Calculator

Calculate how much house you can afford based on your income, debts, and down payment. Free home affordability calculator.

Enter Your Financial Information

$
$
Credit cards, car loans, student loans, etc.
$
%
years

Optional: Property Tax & Insurance

%
Default: 1.2% (varies by location)
%
Default: 0.25% of home value
Maximum Home Price
$351,888
Based on your income and debts
Estimated Monthly Payment
$2,333
Principal & Interest$1,908
Property Tax$352
Home Insurance$73
✅
Debt-to-Income Ratio
34.0%
Within recommended limit
⚠️
Front-End Ratio
28.0%
Above recommended 28%

Affordability Details

💵
Monthly Income
$8,333
🏦
Maximum Loan Amount
$301,888
💰
Down Payment
$50,000
🏠
Max Housing Payment
$2,333

Note: This calculator provides an estimate based on standard lending guidelines (28% front-end ratio, 43% back-end ratio). Your actual approved amount may vary based on credit score, employment history, and lender-specific requirements.

How Much House Can You Afford?

Our home affordability calculator helps you determine the maximum home price you can afford based on your financial situation. This tool considers your income, existing debts, down payment, and mortgage terms to give you a realistic estimate.

Understanding Your Results

- Maximum Home Price: The highest home price you can afford based on standard lending guidelines

- Monthly Payment: Your estimated monthly mortgage payment including principal, interest, taxes, and insurance- Debt-to-Income Ratio: Your total monthly debts divided by your monthly income (lenders typically prefer under 43%)
- Front-End Ratio: Your monthly housing costs divided by your monthly income (lenders typically prefer under 28%)

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How Lenders Calculate Affordability

Most lenders use two key ratios to determine how much you can borrow:

1. Front-End Ratio (Housing Ratio): Your monthly housing costs (mortgage, taxes, insurance) should not exceed 28% of your gross monthly income

2. Back-End Ratio (Debt-to-Income): Your total monthly debts (including housing) should not exceed 43% of your gross monthly income

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Tips for Using This Calculator

1. Be Honest About Debts: Include all monthly debt payments (credit cards, car loans, student loans, etc.)

2. Consider Your Down Payment: A larger down payment increases your buying power and may eliminate PMI
3. Factor in Additional Costs: Remember to budget for maintenance, utilities, and unexpected expenses
4. Get Pre-Approved: Use this calculator as a starting point, then get pre-approved by a lender for accurate numbers

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What's Not Included

This calculator provides an estimate based on standard lending guidelines. Your actual approved amount may vary based on:

- Credit score
- Employment history
- Assets and reserves
- Specific lender requirements

Remember, just because you can afford a certain amount doesn't mean you should. Consider your lifestyle, savings goals, and future plans when deciding on a home price range.

Frequently Asked Questions

Q: How much house can I afford on a $100,000 salary?
A: On a $100,000 salary, you can typically afford a home priced between $300,000 and $400,000, depending on your down payment, debts, and interest rate. Use our calculator with your specific details for an accurate estimate.
Q: What is a good debt-to-income ratio for buying a house?
A: Lenders typically prefer a debt-to-income ratio (DTI) of 43% or less. This means your total monthly debts, including your new mortgage payment, should not exceed 43% of your gross monthly income.
Q: How does down payment affect home affordability?
A: A larger down payment increases your buying power by reducing your loan amount and monthly payment. It may also eliminate PMI (Private Mortgage Insurance) if you put down 20% or more.
Q: What's the difference between front-end and back-end ratio?
A: The front-end ratio (housing ratio) only considers housing costs (mortgage, taxes, insurance). The back-end ratio (debt-to-income) includes all monthly debts. Lenders look at both ratios when approving loans.
Q: Should I use gross or net income for home affordability?
A: Lenders use your gross (before-tax) income when calculating affordability. However, you should also consider your net income and actual take-home pay when budgeting for a home purchase.

Disclaimer

Financial Disclaimer: This calculator is for informational and educational purposes only. The results are estimates and should not be considered as financial, investment, tax, or legal advice. Actual results may vary based on individual circumstances, market conditions, and other factors. Always consult with qualified financial professionals before making financial decisions.

Last updated: December 30, 2025