House Affordability Calculator
How much house can you afford?
House Affordability Calculator
How much house can you afford?
Formula
Based on DTI ratio and mortgage reverse calculationHow to Use
- 1Enter annual income — Input your gross annual household income before taxes.
- 2Enter monthly debts — Include car payments, student loans, credit card minimums, etc.
- 3Enter down payment — Input how much cash you have available for a down payment.
- 4See what you can afford — View the maximum purchase price, monthly payment, and DTI ratio.
Frequently Asked Questions
The 28/36 rule — what is it?
The 28/36 rule says housing costs should not exceed 28% of gross income, and total debt payments should not exceed 36%. This is a guideline, not a strict rule.
How much should I put down on a house?
20% is ideal to avoid PMI. FHA loans require 3.5%. VA loans require 0%. More down payment = lower monthly payments and better rates.
Does my credit score affect affordability?
Yes. Higher credit scores qualify for lower interest rates, which means lower monthly payments and a higher affordable purchase price.
Should I buy the maximum I can afford?
Probably not. Leave room for savings, maintenance, emergencies, and lifestyle spending. Most financial advisors recommend buying below your maximum.