Home Affordability Calculator

How to use this calculator

Enter your gross annual income (before tax), your total monthly debt payments (car loans, student loans, credit-card minimums and other recurring obligations), the down payment you have saved, plus a realistic interest rate and loan term. The calculator instantly estimates the maximum home price you could comfortably target, the monthly payment that implies, and how much of that price comes from a loan versus your cash down payment.

How this is calculated

We use the classic 28/36 rule that lenders rely on. The "front-end" limit says no more than 28% of your gross monthly income should go to housing. The "back-end" limit says no more than 36% should go to all debt combined — so we subtract your existing monthly debts from that 36% figure. Your housing budget is whichever of those two limits is lower. We then set aside roughly 20% of that budget for property taxes, homeowners insurance and similar costs, leaving the rest for loan principal and interest. Working backward from that payment at your rate and term gives the loan you qualify for, and adding your down payment gives the home price.

This is an educational estimate, not a loan pre-approval — see our disclaimer.

A worked example

Say you earn $90,000 a year, that's $7,500 a month. The 28% front-end limit allows about $2,100 for housing. The 36% back-end limit allows $2,700 for all debt, and after subtracting $500 of existing monthly debts you're left with $2,200. The lower of the two — $2,100 — becomes your housing budget. Reserving 20% for taxes and insurance leaves roughly $1,680 for loan principal and interest. At 6.5% over 30 years that payment supports a loan of about $266,000. Add a $40,000 down payment and you land near a $306,000 home price. Change any input above and watch the result move.

Why your debts matter so much

The back-end ratio is where existing debt bites. Every extra $100 of monthly debt payments directly shrinks the room left in your 36% limit, which can pull your whole housing budget down. Paying off a car loan or a credit-card balance before you shop can meaningfully raise the price you qualify for. If you're not sure where you stand, our debt-to-income calculator shows your current ratio at a glance.

Treat this as a starting guideline

This tool gives a quick, conservative guideline — not a guarantee. Lenders also weigh your credit score, employment history, the specific loan program, private mortgage insurance, HOA fees and local tax rates, all of which shift the real number. Just because you can borrow an amount doesn't mean you should stretch to it; many buyers deliberately aim below their maximum to keep breathing room in their budget. Once you have a target price, run the exact payment through our mortgage calculator to see the full picture.