House Affordability Calculator

Determine how much house you can afford based on your income, debts, and financial situation

Income & Debts

Car loans, credit cards, student loans, etc.

Loan Terms

Affordability Analysis

Maximum Home Price

$275,000

Based on your financial profile

Monthly Payment

$1,748.53

Total housing payment

Financial Summary

Monthly Income

$6,250

Debt-to-Income Ratio

36.0%

Remaining Income

$4,001.47

Maximum Loan Amount

$215,000

Recommended Down Payment (20%)

$55,000

Home Buying Guidelines

Financial Rules

  • Keep housing costs under 28% of gross income
  • Total debt should not exceed 36% of income
  • Aim for 20% down payment to avoid PMI
  • Maintain 3-6 months emergency fund

Additional Costs

  • Closing costs (2-5% of home price)
  • Home inspection and appraisal
  • Moving expenses and utilities setup
  • HOA fees and maintenance costs

About House Affordability Calculator

Comprehensive home affordability calculator that analyzes your income, debts, and down payment to determine your realistic home buying budget with detailed financial breakdown.

Common Use Cases

1

First-time home buyer planning

2

Pre-approval preparation

3

Budget setting for house hunting

4

Down payment strategy planning

5

Debt-to-income ratio optimization

6

Real estate agent client guidance

Examples & Demonstrations

Standard affordability calculation

Input:

$75,000 income, $500 monthly debts, 6.5% rate

Output:

Max home price: ~$285,000

Impact of larger down payment

Input:

$100,000 income with 20% down payment

Output:

Avoid PMI, afford ~$380,000 home

Debt reduction impact analysis

Input:

Reduce monthly debts by $300

Output:

Increase home budget by ~$50,000

Tips & Best Practices

💡

Follow the 28/36 rule for housing and total debt

💡

Consider all monthly costs, not just mortgage

💡

Save 20% down payment to avoid PMI when possible

💡

Get pre-approved before house hunting

💡

Factor in moving costs and home maintenance

💡

Keep emergency fund after purchase

Frequently Asked Questions

What percentage of income should go to housing?

The general rule is that housing costs shouldn't exceed 28% of gross monthly income. This includes mortgage principal, interest, taxes, and insurance (PITI). Some lenders allow up to 31% for well-qualified borrowers.

How is debt-to-income ratio calculated?

Debt-to-income ratio is your total monthly debt payments divided by gross monthly income. Most lenders prefer a total DTI under 43%, though some programs allow higher ratios with compensating factors.

How much should I save for a down payment?

While 20% down payment avoids PMI, many programs allow 3-5% down. FHA loans require just 3.5%. Consider your budget, PMI costs, and available assistance programs when deciding.

What other costs should I consider beyond the mortgage?

Factor in property taxes, homeowners insurance, PMI (if applicable), HOA fees, maintenance costs (1-3% of home value annually), utilities, and closing costs (2-5% of purchase price).

Should I buy the maximum house I can afford?

It's generally wise to buy below your maximum to maintain financial flexibility for emergencies, retirement savings, and other goals. Consider your complete financial picture, not just qualifying ratios.

Why Choose House Affordability Calculator?

Our house affordability calculator stands out from other online tools with its precision, speed, and user-friendly interface. Built by engineers for professionals, students, and everyday users, it provides accurate results instantly without requiring any software installation or registration.

With robust error handling, multiple format support, and responsive design, this tool works seamlessly across all devices and browsers. Trust ConvertLarge for all your conversion and calculation needs.