Home Affordability Calculator
Determine how much house you can afford based on your income, debts, and the 28/36 debt-to-income rule. Get a realistic home price range before you start shopping.
Income & Debt Details
Enter your financial information to calculate your home buying budget.
Affordability Results
Max Home Price
$0
Based on 28% front-end DTI
Max Monthly Payment
$0
Including PITI
Front-End DTI
0%
Housing costs / Gross income
Back-End DTI
0%
Total debts / Gross income
Recommended Price Range
$0 - $0
Conservative to aggressive
Loan Amount
$0
After down payment
How Home Affordability Calculator Works
Calculate how much house you can afford based on income, debts, and DTI ratio. Free home affordability calculator with 28/36 rule analysis.
Core Use Case Scenario
Home buyers, real estate investors, and financial planners use this calculator to model monthly payments, amortization schedules, and total interest costs across different loan terms and rates.
Troubleshooting & Edge-Case Failure Points
- PMI drops automatically once equity crosses 20%.
- Extra payments apply to principal only.
- Tax/insurance assumptions vary by location.
- Keep rates as yearly percentages and fees as monthly amounts.
Step-by-Step Instructions
- Enter home price, down payment, interest rate, and loan term.
- Adjust property tax, insurance, HOA fees, and PMI.
- Add extra payments to see accelerated payoff.
- Review monthly breakdown, amortization chart, and savings.
Related Web Utilities (Silo Hub)
Informative Guides & Helper Articles
The 28/36 Rule: Your Guide to Responsible Home Buying
Master the 28/36 rule for home buying. Learn how lenders use front-end and back-end DTI ratios to determine your maximum home price.
Read Article →Debt-to-Income Ratio Explained for Home Buyers
Understand DTI ratio and how it affects your mortgage approval. Learn what front-end and back-end DTI mean for home affordability.
Read Article →How to Calculate Home Affordability: A Step-by-Step Guide
Learn how to calculate home affordability using income, debts, and DTI ratios. Use our guide to determine your realistic home buying budget.
Read Article →How to Use the Home Affordability Calculator
- Enter gross monthly income (before tax, all borrowers combined) and your existing monthly debt payments — car loans, student loans, card minimums.
- Add your down payment and expected rate. Not sure? Start with current 30-year averages and adjust.
- Set local property tax and insurance — these vary enormously by state and can move affordability by $50k+.
- Read your price range at the 28/36 guideline and see the full PITI breakdown at your target price.
Working from a specific salary? Read the full breakdown: How much house can I afford on a $70K salary? — direct answer, both budget tiers, and a calculator preset to $70k.
How the Math Works
Lenders size loans with debt-to-income (DTI) ratios. The classic guideline — the 28/36 rule — caps housing costs at 28% of gross monthly income and total debt at 36%:
Worked example ($70,000 salary): gross monthly income is $5,833. The 28% cap gives $1,633/month for housing (P&I + taxes + insurance + HOA), and the 36% cap allows $2,100 in total debt. With $300/mo of existing car/student debt, housing budget = $1,800 by the back-end rule but $1,633 by the front-end — the smaller number wins. At 6.5% over 30 years with 10% down and typical taxes/insurance, that supports roughly a $230,000–$270,000 home. Conventional loans often stretch to 43%–50% back-end DTI; being house-poor at the max is a choice, not a requirement.
What Moves Affordability Most
| Change | Effect on max price ($70k income) |
|---|---|
| Rate 6.5% → 5.5% | + ~$30,000 |
| Down payment 5% → 20% | + ~$20,000 (and no PMI) |
| Pay off $400/mo of debt | + ~$70,000 |
| High-tax state → low-tax state | + $30,000–$50,000 |
Debt is the silent ceiling: paying off a $400/mo car loan often unlocks more house than saving $50k more for a down payment.
Home Affordability FAQ
How much house can I afford on a $70k salary?
Using the 28/36 rule, roughly $230,000-$270,000 at 2026 rates with 10% down, depending on debts, taxes, and insurance. Run your exact numbers above — the answer changes by tens of thousands with small input changes.
What is the 28/36 rule?
Housing costs should stay under 28% of gross monthly income, and total debt payments under 36%. Lenders enforce the back-end number; your budget should respect the front-end one.
How much down payment do I need?
Conventional loans start at 3%-5% down (with PMI), FHA at 3.5%. Twenty percent avoids PMI and buys a lower rate, but waiting years to save 20% can cost more in price appreciation than the PMI would have.
Do lenders look at take-home or gross income?
Gross. That is why payments that feel comfortable on paper can pinch in reality — taxes, retirement contributions, and insurance come out of the same paycheck. Budget from net income, qualify from gross.
What credit score do I need?
Conventional loans typically want 620+, FHA 580+. Below that, expect higher rates that shrink your maximum price. Above 740 usually earns the best pricing tiers.