Mortgage Affordability Calculator: Determine How Much House You Can Afford

Want to know how much house you can afford? Our free online Affordability Calculator helps you determine your maximum home price based on your income, expenses, and financial situation. Perfect for setting realistic home-buying goals and planning your purchase.

Calculate Your Affordability Now

Why Use Our Affordability Calculator?

  • Income-Based: Calculates based on your earnings
  • DTI Analysis: Considers debt-to-income ratio
  • Complete Budget: Includes all housing costs
  • Realistic Limits: Sets practical price ranges
  • Detailed Breakdown: Shows payment components
  • Free to Use: No cost, no registration required

How to Use the Affordability Calculator

  1. Enter Income Details

    • Input annual income
    • Specify monthly debts
    • Enter down payment amount
    • Set target DTI ratio

  2. Add Property Costs

    • Input interest rate
    • Select loan term
    • Enter tax rate
    • Specify insurance rate

  3. View Results

    • See maximum home price
    • View monthly payment breakdown
    • Analyze income impact
    • Download affordability report

Understanding Home Affordability

Key Components

Component | Description | Example
Total yearly earnings
Income divided by 12
Based on DTI ratio
Initial payment amount
Total affordable amount

Sample Affordability Scenarios

Annual Income | Down Payment | Max Price | Monthly Payment | DTI Ratio
$20,000$280,000$1,867
$30,000$350,000$2,333
$40,000$420,000$2,800
$50,000$525,000$3,500

Use Cases for Affordability Calculator

Home Buying

  • Set price range
  • Plan down payment
  • Budget monthly costs
  • Prepare for purchase

Financial Planning

  • Evaluate income impact
  • Plan for future growth
  • Consider lifestyle changes
  • Set savings goals

Budget Analysis

  • Calculate total costs
  • Plan for emergencies
  • Consider maintenance
  • Account for utilities

Tips for Using Affordability Calculator

  1. Be Realistic

    • Consider all expenses
    • Plan for emergencies
    • Account for maintenance
    • Leave room for savings

  2. Plan Ahead

    • Consider future income
    • Plan for rate changes
    • Account for life changes
    • Set long-term goals

  3. Monitor Changes

    • Track income changes
    • Update calculations
    • Review expenses
    • Adjust budget

Frequently Asked Questions

What is a good debt-to-income ratio?

Most lenders prefer a DTI ratio of 36% or less, with no more than 28% going toward housing costs. Our calculator helps you stay within these guidelines.

How much should I save for a down payment?

While 20% is ideal to avoid PMI, our calculator helps you determine the minimum down payment needed based on your income and target home price.

Should I include all my debts?

Yes! Include all monthly debt payments (car loans, student loans, credit cards) to get an accurate picture of your affordability.

How does my credit score affect affordability?

Your credit score influences your interest rate, which affects your monthly payment and maximum home price. Our calculator helps you understand this impact.