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
First-time home buyer planning
Pre-approval preparation
Budget setting for house hunting
Down payment strategy planning
Debt-to-income ratio optimization
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
Related Tools
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.