Home Affordability Calculator
Find out how much home you can afford based on your income, monthly debts, down payment, and local mortgage rates.
Your Financial Details
Your Home Budget
Maximum Affordable Home Price
$326,331
Max monthly payment: $1,867/mo
🇺🇸 United States: 20% down payment avoids Private Mortgage Insurance (PMI). FHA loans allow as low as 3.5%.
How It Works
The home affordability calculator uses two standard lending guidelines: the 28% front-end rule (housing costs should not exceed 28% of gross monthly income) and the 43% back-end DTI rule (total debt payments should not exceed 43%).
The calculator takes the lower of these two limits as your maximum monthly housing payment, then reverse-engineers the maximum loan amount from your interest rate and term.
Maximum home price = Maximum loan + Down payment. This is a conservative estimate — actual lender decisions also depend on credit score, employment history, and other factors.
Worked example: with $8,000 gross monthly income, the 28% front-end rule caps housing costs at $2,240 per month. If you also carry $500 in existing monthly debt payments, the 36% back-end rule allows $2,880 total debt service, leaving $2,380 for housing — so the binding limit is the front-end $2,240. The calculator applies whichever rule is stricter for your inputs.
Frequently Asked Questions
Written by the Tools & Deals Hub Editorial Team · Reviewed by Durga Prasad Mogulothu, Founder · Last reviewed:
Sources & further reading
- CFPB — Consumer tools (loans, mortgages, savings)
- Investor.gov — Free financial calculators (U.S. SEC)
Results are estimates for planning, not professional advice. Figures can change after publication — check the source for current numbers.