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.
Reviewed by the SparkCalc editorial team
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.
Sources: U.S. CFPB — What Is a Debt-to-Income Ratio? · U.S. CFPB — Buying a House: Tools and Resources for Homebuyers · U.S. CFPB — Ready to Buy a Home?
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.
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You might also find these calculators helpful: Mortgage Calculator, and Rent vs Buy Calculator.
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This calculator provides estimates for informational purposes only and is not financial or lending advice. Actual loan approval, rates, and affordability depend on your lender, credit, and circumstances. Consult a qualified mortgage professional.