Home Affordability Calculator

Determine how much house you can afford.

How to Do It Manually

Use your income, down payment, and credit to determine maximum home price. Lenders typically approve mortgages up to 28% of gross income.

Max Home Price = (annual income × 0.28 × 12) ÷ monthly payment factor
  1. Determine your gross monthly income.
  2. Multiply by 0.28 to get max monthly housing payment allowed.
  3. Determine down payment amount (20% recommended).
  4. Use the loan formula to find max loan amount.
  5. Add down payment to loan for max home price.

Frequently Asked Questions

Can I afford a home with less than 20% down?

Yes, but expect PMI (mortgage insurance), higher interest rates, and stricter approval.

What if my debt-to-income ratio is high?

Lenders may require lower down payment or approve a smaller loan. Pay down debt first.