Does this include property tax and insurance?

The maximum payment calculated includes PITI (principal, interest, taxes, insurance) in the 28% housing ratio. Budget an additional 1–2% of home value annually for taxes and insurance.

How much down payment do I need?

Conventional loans typically require 5–20% down. FHA loans allow 3.5%. Putting less than 20% down usually requires Private Mortgage Insurance (PMI), which adds ~0.5–1% annually.

Should I buy at the maximum I can afford?

Not necessarily. The calculator shows the maximum, but most financial advisors suggest staying below the limit to maintain flexibility for savings, repairs, and unexpected expenses.

House Affordability Calculator

The House Affordability Calculator estimates the maximum home price you can comfortably afford based on your gross annual income, monthly debts, down payment, and current mortgage rates. It uses the widely-accepted 28/36 rule: housing costs should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%.

Gross Annual Income($)

Monthly Debt Payments (car, student loans, etc.)($)

Down Payment($)

Annual Mortgage Rate(%)

Loan Term

How to Use This Calculator

1
Enter your gross annual household income (before tax).
2
Enter total monthly debt payments (car loans, student loans — not utilities).
3
Enter your available down payment.
4
Enter the current mortgage interest rate.
5
Select your preferred loan term.
6
Click Calculate to see the maximum home price you can afford.

Frequently Asked Questions

The 28/36 rule says: spend no more than 28% of gross monthly income on housing, and no more than 36% on total debt. Lenders use these ratios to approve mortgage applications.

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