Home Affordability Calculator
Free home affordability calculator using the 28/36 rule with your real income, debts, and local property taxes. No realtor bias — honest numbers only.
Max Home Price
$0
Monthly Payment
$0
Down Payment Needed
$0
DTI Ratio
0%
$
$30K$500K
%
3%50%
$
$0$5K
%
2%12%
$
$0$25K
$
$0$6K
$
$0$1K
Monthly Payment Breakdown
Formula Used
Max Monthly Housing = Gross Monthly Income × 0.28
Max Monthly Debt = Gross Monthly Income × 0.36
Max Mortgage Payment = Max Monthly Housing - Property Tax - Insurance - HOA
Max Home Price = Max Mortgage Payment × [(1+r)^n - 1] / [r(1+r)^n]
(reverse of the mortgage payment formula)
How This Home Affordability Calculator Works
This calculator uses the 28/36 rule — the same guideline mortgage lenders use — to determine how much house you can realistically afford.
The 28/36 Rule
- 28% for housing: Your total housing payment (PITI: Principal + Interest + Tax + Insurance) should not exceed 28% of gross monthly income
- 36% for total debt: All debt payments (housing + car + student loans + credit cards) should not exceed 36% of gross monthly income
Why Banks Approve More Than You Can Afford
Banks often pre-approve you for the maximum the 36% rule allows. But they don't account for retirement savings, emergency funds, childcare, or lifestyle. Use this calculator to find what actually fits your budget, not what a lender will give you.
Frequently Asked Questions
How much house can I afford based on my income?
A common guideline is the 28/36 rule: spend no more than 28% of your gross monthly income on housing costs (mortgage, taxes, insurance) and no more than 36% on total debt (housing + other debts). On a $100,000 annual income, that's about $2,333/month for housing, which could support a home priced around $350,000-$400,000 depending on your down payment and interest rate. Use CalcDeck's free home affordability calculator to get a personalized estimate.
What costs are included in a monthly mortgage payment?
Your total monthly housing payment typically includes PITI: Principal (loan repayment), Interest (cost of borrowing), Taxes (property tax), and Insurance (homeowners insurance). If you put less than 20% down, PMI (private mortgage insurance) is added. HOA fees may also apply. CalcDeck's home affordability calculator factors in all these costs to show your true monthly obligation — not just the loan payment.
How much down payment do I need to buy a house?
While 20% down is ideal (avoiding PMI and getting the best rates), many buyers put down 3-5% through conventional loans, 3.5% for FHA loans, or 0% for VA and USDA loans. Lower down payments mean higher monthly payments, PMI premiums, and more total interest. A $350,000 home with 3% down costs roughly $200/month more in PMI alone compared to 20% down. Use CalcDeck's home affordability calculator to compare different down payment scenarios.
What debt-to-income ratio do mortgage lenders require?
Most conventional mortgage lenders prefer a front-end DTI (housing only) under 28% and a back-end DTI (all debts) under 36%, though some will go up to 43-50% for strong borrowers. FHA loans may allow up to 50%+ back-end DTI. Your DTI includes student loans, auto loans, credit card minimums, and the proposed mortgage payment. Lower DTI means better rates and easier approval. Calculate your DTI before applying.
Should I buy a home or keep renting?
Buying makes financial sense if you plan to stay 5+ years, can afford the full cost of homeownership (maintenance, taxes, insurance), and have stable income. The breakeven between buying and renting is typically 3-7 years depending on your market. Build equity instead of paying a landlord's mortgage — but only if the timing and finances are right. Use CalcDeck's home affordability calculator to see what purchase price fits your budget, then compare with local rents.