Home Affordability Calculator
Enter your gross income, your other monthly debts, the down payment you have saved and the mortgage terms, and the calculator finds the highest home price that fits. It uses the two limits lenders look at, a cap on the housing payment and a cap on all debts together, and shows which one is holding you back. You also get the loan amount, the full monthly payment split into principal and interest, property tax, insurance and HOA dues, and the share of income each part uses. Everything runs in your browser.
before tax
car, student loans, card minimums
cash you can put down
yearly
15 or 30 are common
per year
per year
per month
| Principal and interest | $1,692.83 |
| Property tax | $282.17 |
| Home insurance | $125.00 |
| HOA dues | $0.00 |
| Total per month | $2,100.00 |
| Housing as share of income | 28.0% |
| Housing plus debts as share of income | 33.3% |
This is the highest price your numbers support, not a price you should aim for. Lenders also look at your credit score, savings, job history and the loan type, and you still need money for closing costs, moving and repairs. The calculator finds the price where the monthly payment (loan payment plus property tax, insurance and HOA dues) exactly uses the room allowed by the lower of the two limits. Property tax and insurance vary a lot by area, so replace the sample figures with yours. Everything runs in your browser and nothing you enter is sent anywhere.
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Math & MoneyAbout the Home Affordability Calculator
Lenders judge a budget with two debt-to-income ratios. The front-end ratio is the housing payment as a share of gross monthly income, and the back-end ratio adds your other monthly debts. The classic guideline is 28 and 36 percent, and the FHA benchmark is 31 and 43 percent. The calculator takes the smaller of the two room amounts and solves for the price where the whole payment (the loan payment plus property tax, insurance and HOA dues) exactly uses it. Property tax is a percentage of the price, so the price is solved directly rather than by trial and error. For example, with 90,000 of income, 400 a month of other debts, 40,000 down, a 6.5% rate over 30 years, property tax of 1.1% and insurance of 1,500 a year, 28% of the 7,500 monthly income is 2,100 and 36% minus the 400 of debts is 2,300. The smaller figure, 2,100, sets the budget, which supports a price of about 307,824 with a loan of 267,824. The payment is 1,692.83 of principal and interest, 282.17 of property tax and 125 of insurance. Raise the other debts to 1,200 a month and the back-end limit leaves only 1,500, which cuts the price to about 224,920. The result is a ceiling, not a recommendation. Lenders also weigh credit score, savings and job history, and you still need cash for closing costs and repairs.
What is the 28/36 rule?▾
It is a guideline that your housing payment should be no more than 28% of gross monthly income and your total debt payments, housing included, no more than 36%.
How much house can I afford on 90,000 a year?▾
With 400 a month of other debts, 40,000 down and a 6.5% 30-year loan, about 307,800 under the 28/36 rule. The answer moves a lot with your rate, down payment and debts.
Is gross or net income used?▾
Gross income, before tax. Lenders use gross monthly income for debt-to-income ratios.
Does the result include property tax and insurance?▾
Yes. The monthly payment includes principal and interest, property tax, home insurance and HOA dues, because lenders count all of them.
Is my data uploaded?▾
No. The calculation runs in your browser and nothing you enter is sent anywhere.