Free tool
How much house can I afford?
Use this home affordability calculator to estimate a price ceiling under the debt ratios you choose. Enter income, monthly debts, down payment, quoted interest rate and term. Defaults are examples, not current lender quotes. Check your wider household budget before choosing a price. Print or save the assumptions for a buyer client. Entries stay in your browser.
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How the maximum price is worked out
Gross monthly income is multiplied by the housing ratio (28% by default) to give one limit. A second limit is gross monthly income times the total debt ratio (36% by default) minus your other monthly debt payments. The lower of the two is the monthly housing budget. Insurance and any HOA fee come off the budget first. What remains has to cover principal and interest on the loan, property tax and, under 20% down, mortgage insurance. Because tax and mortgage insurance depend on the price, the calculator solves for the highest price whose full monthly cost fits the budget, then rounds it down to the nearest hundred.
Assumptions to say out loud
- Rates and terms: a fixed rate and a fixed term, with the figures you enter.
- Taxes and insurance: a flat percentage of price and a flat yearly amount. Real bills depend on the property and area.
- Mortgage insurance: added only under 20% down, at the rate you enter.
- Not included: utilities, maintenance, closing costs, moving costs and savings goals.
Using it with buyers
Compare the estimated payment with your whole household budget, including savings, utilities and maintenance. The CFPB affordability guidance explains why a borrowing estimate and a comfortable repayment budget differ (checked October 8, 2026).
- Run it with the buyer’s real numbers, then once with a bigger down payment or lower debts to show what changes.
- Print the sheet to start a pre-approval conversation, and be clear that a lender decides what they can borrow.
- Remind them that being able to borrow a sum and being comfortable repaying it are different questions.
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Meeting a new buyer? Use the buyer consultation worksheet to record their needs and wants.
Guide: How to explain debt-to-income ratio to home buyers.
Compare loan types with the FHA loan calculator, VA loan calculator, PMI calculator and property tax calculator.
Common questions
How much house can I afford?
This estimates a home-price ceiling under the housing and total-debt ratios you enter, using whichever monthly limit is lower. The 28% and 36% defaults are illustrative guidelines, not approval limits or a household budget. Check utilities, maintenance, savings and other expenses separately to decide what feels affordable.
What are the 28% and 36% rules?
The 28% figure is the front-end ratio: housing costs divided by gross monthly income. The 36% figure is the back-end ratio: housing costs plus other monthly debts (car loans, student loans, credit card minimums) divided by gross monthly income. They are guidelines, not a lender’s decision, and you can change both in the form.
Do lenders use 28/36?
Some do, and many loan programs allow higher ratios with strong credit, savings or other factors. Lenders look at credit, assets, employment, the loan type and more. Treat the result as a starting point for a conversation, and have the buyer talk to a lender for a real pre-approval.
What does the calculation include?
Principal and interest on the loan, property tax as a percentage of the price per year, homeowner’s insurance per year, any monthly HOA fee, and mortgage insurance at the rate you enter when the down payment is under 20%. It does not include utilities, maintenance, closing costs or moving costs.
Why is mortgage insurance in there?
With less than 20% down, many loans carry private mortgage insurance or a similar charge. The calculator adds it at the yearly rate you set, as a percentage of the loan, only when the down payment is under 20% of the price. If your loan differs, change the rate or set it to 0.
Does a bigger down payment raise the price I can afford?
Yes. Every dollar down is a dollar you do not have to borrow, so the same monthly limit supports a higher price. At 20% or more down the mortgage insurance charge in this calculator also drops away.
Does the calculator save what I enter?
No. Incomes, debts, names and contact details stay in your browser and are not sent to Kadapt, stored, or used in analytics. The only thing counted is that someone pressed the print, PNG or copy button, never what was on the sheet.
Is this mortgage or financial advice?
No. It is an estimating aid built from the figures you enter and the assumptions shown on the sheet. It is not a pre-approval, a loan offer or advice. Rates, taxes, insurance and lending rules vary, so a buyer should confirm the numbers with a lender.