# Home Affordability Calculator

URL: https://speedycalculator.com/calculators/finance/house-affordability/
Last updated: 2026-10-25

> The home affordability calculator estimates the most expensive home you can afford from your income, debts, down payment, interest rate and the 28/36 rule – or from the maximum monthly payment you choose – including property tax, insurance and closing costs.

## Inputs

- Gross monthly income
- Other monthly debt payments
- Limit
- Maximum monthly housing payment
- Money for the down payment
- Interest rate (%)
- Loan term (years, months)
- Property tax (yearly)
- Homeowner insurance (yearly)
- Closing costs (% of price) (%)

## Results

- Maximum monthly housing payment
- Available for principal and interest
- Maximum loan
- Maximum home price
- Closing costs
- Front-end ratio
- Back-end ratio

## Formula

```
Max housing payment = min(28% × income, 36% × income − other debts) (or your chosen payment)
Max P&I = max housing − (property tax + insurance) ÷ 12
Max loan = P&I × (1 − (1 + i)^−n) ÷ i
Max price = max loan + down payment − closing costs
```

## Explanation

Lenders typically limit housing costs to 28% of gross income and total debt to 36% (some allow up to 43–50%). Being approved for a loan doesn't mean it fits your budget – leave room for savings and repairs.

### How to use the Home Affordability Calculator

- **Gross monthly income**
- **Other monthly debt payments**
- **Limit**
- **Maximum monthly housing payment**
- **Money for the down payment**
- **Interest rate**
- **Loan term**
- **Property tax (yearly)**
- **Homeowner insurance (yearly)**
- **Closing costs (% of price)**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter your gross monthly income, monthly debts, down payment, interest rate, term, property tax and insurance.

### Tips

- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.

### Common mistakes to avoid

- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.

### Inputs explained

FieldWhat to enterGross monthly incomeAmount in your currencyOther monthly debt paymentsAmount in your currencyLimitChoose one: 28/36 rule (conventional), 31/43 (FHA), Custom maximum paymentMaximum monthly housing paymentAmount in your currencyMoney for the down paymentAmount in your currencyInterest rateIn %Loan termUnits: years, monthsProperty tax (yearly)Amount in your currencyHomeowner insurance (yearly)Amount in your currencyClosing costs (% of price)In %

### What each result means

- **Available for principal and interest** = max([Maximum monthly housing payment] - [Property tax (yearly)]÷12 - [Homeowner insurance (yearly)]÷12, 0)
- **Maximum loan** = pvann([Interest rate]÷1200, [Loan term], [Available for principal and interest], 0)
- **Maximum home price** = ([Maximum loan] + [Money for the down payment])÷(1 + [Closing costs (% of price)]÷100)
- **Closing costs** = [Maximum home price]×[Closing costs (% of price)]÷100
- **Front-end ratio** = [Maximum monthly housing payment]÷[Gross monthly income]×100
- **Back-end ratio** = ([Maximum monthly housing payment] + [Other monthly debt payments])÷[Gross monthly income]×100

### Example values

How the main result changes when **Gross monthly income** changes and everything else stays at the example values above:

Gross monthly incomeMaximum home price4,500130,445.716,750254,863.939,000360,849.8211,250457,619.5413,500554,389.2718,000747,928.72

## Worked example

Inputs — Gross monthly income: $9,000; Other monthly debt payments: $600; Limit: 28/36 rule (conventional); Maximum monthly housing payment: $2,500; Money for the down payment: $60,000; Interest rate: 6.5 %; Loan term: 30 years; Property tax (yearly): $4,800; Homeowner insurance (yearly): $1,800; Closing costs (% of price): 3 %.

Results — Maximum monthly housing payment = $2,520.00; Available for principal and interest = $1,970.00; Maximum loan = $311,675.31; **Maximum home price = $360,849.82**; Closing costs = $10,825.49; Front-end ratio = 28 %; Back-end ratio = 34.67 %.

## FAQ

**How much house can I afford?**
Commonly about 3–4 times your gross annual income, depending on rates and debts.

**What is the 28/36 rule?**
Housing costs ≤ 28% of gross income and total debts ≤ 36%.

**Do lenders include property tax and insurance?**
Yes – they count the full PITI payment.

**What formula does the Home Affordability Calculator use?**
Max housing payment = min(28% × income, 36% × income − other debts) (or your chosen payment).


## Sources

- [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/)