House Affordability Calculator
Estimate the home price you can afford from your income.
Result
Results are estimates for general information only and are not professional advice.
What lenders mean by affordable
Affordability is not what you feel you can manage — it is a ratio test lenders apply before they will lend at all. The common benchmark is the 28/36 rule: housing costs should stay within 28% of gross monthly income, and total debt payments including the mortgage within 36%. This calculator applies those limits in reverse, starting from your income and working back to a price.
The formula behind it
Monthly income is annual income ÷ 12. The affordable housing payment is the lower of income × 0.28 and income × 0.36 − existing debts. That payment is then converted into a loan amount by reversing the amortization formula, and your down payment is added to give the maximum price. Existing debts matter more than people expect — a 400 car payment can reduce your borrowing capacity by tens of thousands.
How to use this calculator
Enter your annual income, your total monthly debt payments, your available down payment, the interest rate and the term. The result shows an estimated maximum home price and the corresponding monthly payment. Try it with your debts cleared to see exactly what they are costing you in buying power.
What the ratio leaves out
A real housing payment includes property tax, insurance and often service charges or mortgage insurance, so treat the figure here as principal and interest only and budget above it. Borrowing the maximum a lender permits is rarely wise: it leaves nothing for maintenance, a rate rise at renewal, or a period without income. Many buyers deliberately target 20–25% of gross income rather than 28%.
Frequently Asked Questions
What is the House Affordability Calculator?
Estimate the home price you can afford from your income. It runs instantly in your browser and is completely free to use.
What do I need to enter to use the House Affordability Calculator?
The House Affordability Calculator asks for the following values (5): Annual income, Monthly debts, Down payment, Interest rate (%), Term (years). Fill them in and the result appears immediately — the calculation runs on your own device, so nothing you type is sent to a server.
How accurate is the House Affordability Calculator?
The House Affordability Calculator uses standard, widely-accepted formulas, so its figures are reliable estimates for everyday planning. They are not a substitute for advice from a qualified professional.
Is the House Affordability Calculator free, and do I need an account?
Yes. The House Affordability Calculator — and every other calculator on Calculatis — is completely free, with no registration, no download and no limit on how often you use it.