About the House Affordability Calculator
Before you start looking at homes it helps to know a realistic price range. This house affordability calculator takes your yearly income, your monthly debt payments, the down payment you have saved and the mortgage rate and term, then finds the highest home price that fits within two common lending rules. The front-end rule limits housing costs to a share of your income, 28 percent by default, and the back-end rule limits housing plus all your other debt payments, 36 percent by default. Property tax, home insurance and HOA fees are counted, so the answer reflects the whole monthly cost of owning, not only the mortgage.
Updated October 2026
How to use the House Affordability Calculator
- 1Enter your gross yearly income and your monthly debt payments.
- 2Enter the down payment you have available.
- 3Enter the mortgage rate, the loan term and the yearly property tax and insurance as percentages of the price.
- 4Add any monthly HOA fee, and change the 28 and 36 percent limits if your lender uses different ones.
- 5Read the highest price, the loan size and the full monthly cost.
A worked example
Suppose you earn 120,000 a year, have 500 a month in debts and 60,000 saved for a down payment, with a 6 percent rate over 30 years, 1.2 percent property tax and 0.4 percent insurance. Your income is 10,000 a month. The front-end limit is 2,800 and the back-end limit is 3,600 minus 500, which is 3,100, so the front-end limit applies. After tax and insurance, the calculator finds the loan that makes the full monthly cost exactly 2,800 and adds your down payment to get the price.
Ways to afford more
- Pay down debts before applying, since each dollar of monthly debt cuts your budget.
- Save a larger down payment.
- Compare rates from several lenders, because even half a point changes the price you can afford.
- Look at areas with lower property tax.
- Add a second income, or wait for a raise.
Related tools
Use the Mortgage Calculator for a payment on a specific home, the Down Payment Calculator to plan your savings, the Rent vs Buy Calculator to see if buying makes sense at all, the Refinance Calculator later on, and the Debt-to-Income Ratio Calculator to check your ratios. This tool is a guide and does not replace advice from a lender.
Features
- Highest affordable price from income and debts
- Front-end and back-end ratio limits you can change
- Property tax, insurance and HOA included
- Principal and interest shown separately
- Shows which ratio is the limit
- Clear message when no home fits
- Runs in your browser
Frequently asked questions
What is the 28/36 rule?
It is a guideline lenders use. Your housing costs, including mortgage, property tax, insurance and HOA fees, should not be more than 28 percent of your gross monthly income, and your housing costs plus all other monthly debt payments should not be more than 36 percent. The calculator finds the price that keeps you under whichever limit is tighter.
Why do my other debts matter?
Car loans, student loans and credit card minimums reduce how much of your income is left for a mortgage. With 500 a month in debts and a 36 percent back-end limit on 100,000 a year, your total housing budget falls from 3,000 to 2,500 a month if that is lower than the front-end figure.
Does a bigger down payment let me buy a more expensive home?
Yes, because the loan you need is smaller for the same price, but the monthly budget stays fixed, so a bigger down payment helps by letting more of that budget go toward the home price. It also reduces or removes mortgage insurance in many markets, which this tool does not include.
What should I enter for property tax and insurance?
Both are yearly costs as a percent of the home price. Property tax commonly ranges from 0.5 to 2.5 percent depending on where you live, and insurance is often around 0.3 to 0.6 percent. Check local figures for homes you like, since these vary widely.
Is the maximum price what I should spend?
Not necessarily. The result is the most a lender's rules would allow, but a comfortable budget is often lower. Think about savings, childcare, repairs and other goals, and leave room for rates or bills to change. Try lower income or higher rates to see how sensitive your answer is.
Does this include closing costs?
No. Closing costs are paid up front, usually 2 to 5 percent of the price, and are separate from your down payment. Make sure you have enough cash for both. Mortgage insurance, if you need it, would also add to the monthly cost.