Home Affordability Calculator US (2026)
Estimate affordable home price from income, debts, down payment, mortgage rate and property costs.
United States Calculator
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Move the sliders or type exact numbers. Results update instantly.
Instant Estimate
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Affordable Home Price
$527,118
Based on your selected home affordability calculator assumptions. Try different sliders to compare scenarios.
Estimated Mortgage Amount
$447,118
Max Monthly Payment
$2,900
These are planning estimates, not tax, legal or investment advice. Country rules, lender policies and tax rates can change.
How to Use the Home Affordability Calculator
Enter annual household income
Input combined pre-tax annual income for all co-borrowers.
Deduct monthly recurring debts
Include monthly car loans, student loans, and credit card minimum payments.
Set down payment and mortgage rate
Input available cash down payment and current market mortgage interest rates.
Formula & Calculation Methodology
Affordable Home = Eligible mortgage plus down paymentThis calculator uses standard United States financial formulas, IRS thresholds, and amortization schedules. All results compute instantly in your browser with zero data stored or transmitted.
Calculation Examples & Scenarios
$120,000 Income with $500/Month Existing Debts
$120,000 household income, $500 monthly auto loan, 6.75% mortgage rate, $40,000 down payment.
$180,000 Income with Zero Debt
$180,000 income, zero consumer debt, 6.5% interest rate, $75,000 down payment.
Key Benefits
- Applies industry-standard 28/36 debt-to-income (DTI) underwriting guidelines
- Factors in property taxes, homeowners insurance, and private mortgage insurance (PMI)
- Prevents buyers from overextending and becoming "house poor"
Common Use Cases
- First-time homebuyers establishing a realistic home search budget before pre-approval
- Evaluating how paying off a car loan expands your home purchasing power
- Testing the impact of a 0.5% interest rate change on your buying power
The 28/36 Rule: How Mortgage Lenders Determine Affordability
Mortgage lenders rely on two debt-to-income ratios: Front-end DTI (your total housing payment—PITI—should not exceed 28% of your gross monthly income) and Back-end DTI (your total housing payment plus all recurring consumer debts should not exceed 36% to 43% of gross income).
Staying within the 28/36 ratio ensures you retain adequate monthly cash flow for emergency savings, retirement investments, home maintenance, and family living expenses.
Frequently Asked Questions
The 28/36 rule states that housing costs (PITI) should not exceed 28% of gross monthly income, and total debt payments (housing + student loans, cars, credit cards) should not exceed 36%.
With a $120,000 annual income ($10,000/mo), a 20% down payment, and minimal existing debt, buyers can typically qualify for a home priced between $425,000 and $525,000 depending on prevailing mortgage rates and property taxes.
Every 1% increase in mortgage interest rate reduces your home purchasing power by roughly 9% to 11% for the identical monthly payment amount.
Beyond mortgage principal and interest, homeowners must budget for property taxes, homeowners insurance, private mortgage insurance (PMI if down payment is <20%), HOA fees, and 1%–2% annual maintenance.
No. Conventional conforming loans allow down payments as low as 3% for first-time buyers (or 5% standard), and FHA loans require 3.5%, though down payments under 20% require monthly mortgage insurance (PMI).
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