Home Affordability Calculator

Estimates how much house you can afford from your income, monthly debts, down payment and loan terms, using debt-to-income limits. It shows the monthly housing payment that fits, the maximum loan and the home price, plus a conservative to aggressive range.

How to use

1. Enter your "Annual income (before tax)", "Monthly debt payments" and "Down payment".
2. Enter the "Interest rate" and choose the "Loan term".
3. Fill in the "Property tax rate", "Homeowners insurance", "HOA dues" and "PMI rate" that apply to you.
4. Adjust the "Front-end limit" and "Back-end limit" if you want, then read the "Home price", the "Monthly payment at this price" and the "Conservative to aggressive" table.

How it works

• The housing budget is the smaller of income ÷ 12 × front-end limit, and income ÷ 12 × back-end limit minus your monthly debts. The 28% and 36% defaults are a common rule of thumb, not a lender requirement.
• The home price is the highest price whose principal, interest, property tax, insurance, HOA dues and PMI fit that budget. PMI is added only when the down payment is under 20% of the price.
• Closing costs, cash reserves and credit score are not considered. This is a planning estimate and does not mean a lender will approve the loan or the price.

Questions and answers

How much house can I afford on a 120,000 salary?

With the default limits, 28% of 10,000 a month is 2,800 for housing, as long as 36% minus your debts is not lower. The home price that fits depends on the rate, taxes, insurance and down payment you enter.

What is the 28/36 rule?

Housing costs should be no more than 28% of gross monthly income, and housing plus other debt payments no more than 36%. It is a guideline, and you can change both limits on the page.

What counts as monthly debt payments?

Regular payments such as car loans, student loans, credit card minimums and child support. Rent is not included, because the new housing payment replaces it.

Does a bigger down payment raise the price I can afford?

Yes. The down payment is added to the maximum loan, and a down payment of 20% or more also removes PMI from the monthly cost.