House Affordability Calculator Online Free
House Affordability Calculator
Latest Mortgage Rates
30 Years Fixed
6.337%
15 Years Fixed
5.395%
10 Years Fixed
5.244%
Income & Debt
Salary + other incomes (before tax)
Car loans, student loans, credit cards, etc.
Loan Details
Annual Costs
Per year
Per year
Per year
Maximum Home Price You Can Afford
You can afford a home up to:
$0
Down Payment (20%)
$0
Loan Amount
$0
Monthly Payment Breakdown
Debt-to-Income Ratios
Housing costs ÷ Gross monthly income
Housing costs + All debt ÷ Gross monthly income
The house affordability calculator estimates the maximum home price you can afford based on your income, down payment, monthly debts, and current interest rates. It applies the standard 28/36 rule lenders use to evaluate mortgage applications.
The 28/36 Rule
Lenders use two debt-to-income ratios to qualify borrowers. The front-end ratio (28%): your total housing cost (principal, interest, taxes, insurance) should not exceed 28% of gross monthly income. The back-end ratio (36%): total monthly debt payments including the mortgage should not exceed 36% of gross income. Most conventional lenders allow up to 43-45% back-end ratio for well-qualified borrowers.
Max Housing Payment = Gross Monthly Income x 0.28 Max Total Debt Payment = Gross Monthly Income x 0.36
Example: $8,000/month gross income. Max housing: $2,240. Max total debt: $2,880. If you have $400/month in car payments, max mortgage = $2,480.
Affordable Home Price by Income (20% Down, 7% Rate)
| Annual Income | Max Monthly Payment | Max Loan (28% rule) | Max Home Price |
|---|---|---|---|
| $60,000 | $1,400 | $210,000 | $262,500 |
| $80,000 | $1,867 | $280,000 | $350,000 |
| $100,000 | $2,333 | $350,000 | $437,500 |
| $120,000 | $2,800 | $420,000 | $525,000 |
| $150,000 | $3,500 | $525,000 | $656,250 |
Other Costs to Include
The sticker price is just the start. Budget for: property taxes (0.5-2.5% of value per year), homeowners insurance ($1,000-3,000/year), HOA fees ($200-600/month in many communities), maintenance (budget 1% of home value per year), and closing costs (2-5% of loan amount). Add all of these to the monthly mortgage payment to get the true cost of ownership.
Frequently Asked Questions
How much house can I afford on $80,000 salary?⌄
Using the 28% rule: $80,000/12 x 0.28 = $1,867/month max housing payment. At 7% for 30 years with 20% down, that supports a loan of about $280,000 and a home price of $350,000. With a 5% down payment, the home price drops to around $310,000 due to PMI. Your total debts affect this figure significantly.
What is the debt-to-income ratio for a mortgage?⌄
DTI is your total monthly debt payments divided by gross monthly income. Most lenders prefer a back-end DTI below 43%. The front-end DTI (housing only) should ideally stay below 28%. High student loan, car, or credit card payments reduce how much mortgage you qualify for.
Can I afford a house if I have student loans?⌄
Yes, but student loans count against your DTI. FHA loans use 1% of the student loan balance as a monthly payment in the DTI calculation if loans are deferred. If your student loan payments are high, they directly reduce the mortgage amount you qualify for. Paying down student debt before buying can increase your purchasing power.
Is it better to rent or buy a home?⌄
Buying makes financial sense when you plan to stay at least 5-7 years, have a stable income, and your area's price-to-rent ratio favors ownership. Renting offers more flexibility and avoids maintenance costs, property taxes, and the risk of price decline. The rent vs. buy calculator compares the full financial picture.