Mortgage Affordability Calculator
Find out exactly how much house you can afford based on your income, debts, down payment, interest rate, and loan term.
Calculate How Much You Can Afford
Enter your details above to see how much house you can afford.
How We Calculate It
Max Total Debt Payment = Gross Monthly Income × 36%
We use standard lender guidelines (28/36 rule).
What is Mortgage Affordability?
Mortgage affordability calculators help you determine the maximum home price you can realistically afford based on your income, existing debts, down payment, interest rates, and loan term.
How to Use This Calculator
Enter your gross monthly income, current monthly debt payments, planned down payment percentage, expected interest rate, and desired loan term. The calculator shows your maximum affordable home price, maximum loan amount, and recommended monthly payment.
Frequently Asked Questions
What is the 28/36 rule?
The 28/36 rule is a common guideline used by lenders. It suggests that no more than 28% of your gross monthly income should go toward housing costs, and no more than 36% should go toward total debt payments.
Does this include property taxes and insurance?
This calculator focuses on the principal and interest portion of the mortgage. In reality, you should also budget for property taxes, homeowners insurance, and possibly PMI if your down payment is less than 20%.
Can I afford more if I have a larger down payment?
Yes. A larger down payment reduces the loan amount needed, which can increase the total home price you can afford while keeping monthly payments the same.
Should I use the maximum amount the calculator shows?
Not necessarily. It's often wise to borrow less than the maximum to have more financial flexibility and a lower monthly payment.
How does credit score affect this?
A higher credit score can help you qualify for a lower interest rate, which increases the home price you can afford.
What other costs should I consider?
Remember to budget for property taxes, insurance, maintenance, and closing costs beyond the mortgage payment.