Home Affordability Calculator
How much house can you really afford? This calculator analyzes your income, existing debts, and down payment to estimate a comfortable home price. See monthly payments and ensure you don't become house poor.
How We Calculate This
Maximum home price is calculated by finding the loan amount that results in a total housing payment (PITI) plus existing debts equal to the target DTI ratio. We use standard amortization formulas.
Frequently Asked Questions
What is the 28/36 rule?
The 28/36 rule says your mortgage payment should be ≤28% of gross income, and total debt payments ≤36% of gross income. This calculator uses the 36% total DTI as default.
How much down payment do I need?
20% down avoids PMI (private mortgage insurance). FHA loans allow 3.5% down, conventional loans as low as 3%. Larger down payments mean lower monthly payments and better rates.
Should I buy at my maximum affordability?
Generally no. Leave room for savings, emergencies, and lifestyle. Consider buying 10-20% below your max to avoid being "house poor." Factor in maintenance costs (1% of home value annually).
Does this include PMI?
This calculator assumes 20% down (no PMI). With less than 20% down, add 0.5-1% of the loan amount annually for PMI, which increases your monthly payment.
Related Calculators
You might also find these calculators helpful: Mortgage Calculator, and Rent vs Buy Calculator.