Home Affordability Calculator — How Much House Can You Afford? 2026

🏠 Home Affordability Calculator — How Much House Can You Afford? 2026

Free Home Affordability Calculator — Estimate how much house you can afford based on income, debts, down payment, and rates. Get DTI ratio, monthly payment breakdown, and affordability chart.

✓ DTI Ratio ✓ Monthly Payment Breakdown ✓ Affordability Chart ✓ 28/36 Rule ✓ Instant Results

💰 Gross Monthly Income ($)

💳 Monthly Debt Payments ($)

Car loans, student loans, credit cards, etc.

🏦 Down Payment ($)

📈 Interest Rate (%)

6.5%

📅 Loan Term (years)

🏛️ Annual Property Tax ($)

🏠 Annual Home Insurance ($)

📋 Monthly HOA Fees ($)

🏡 Maximum Affordable Home Price

Monthly Payment (PITI + HOA)

Down Payment %

📊 Debt-to-Income (DTI) Ratios

Front-End DTI (Housing/Income): 0%

Back-End DTI (Total/Income): 0%

Lenders typically prefer 28% / 36%

📊 Monthly Payment Breakdown

📘 Home Affordability Guide — Smart Home Buying Decisions

🔹 The 28/36 Rule

Lenders use this guideline: housing expenses (PITI + HOA) should not exceed 28% of gross monthly income, and total debts (housing + other) should not exceed 36%. Our calculator follows this conservative rule.

🔹 What's Included in PITI

Principal, Interest, Taxes, and Insurance. Plus HOA fees if applicable. Our calculator accounts for all of these to give you a realistic monthly payment.

🔹 Down Payment Impact

Larger down payment means lower loan amount, smaller monthly payment, and may eliminate PMI. 20% down is ideal, but many loans allow 3-10% down.

🔹 Debt-to-Income (DTI) Explained

Front-end DTI = housing expenses / income. Back-end DTI = (housing + other debts) / income. Lower DTI improves approval odds and interest rates.

🔹 Interest Rates Matter

A 1% difference in rate can change affordability by tens of thousands. Use our calculator to compare rates and terms.

🔹 Hidden Costs of Homeownership

Beyond mortgage: maintenance (1-2% of home value/year), utilities, HOA increases, and special assessments. Budget extra for surprises.

❓ Frequently Asked Questions

How much house can I afford based on my salary? +

A common rule: 2.5 to 4 times your annual gross income. But your actual affordability depends on debts, down payment, interest rates, and taxes. Our calculator provides a personalized estimate.

What is debt-to-income ratio (DTI) and why does it matter? +

DTI is total monthly debt payments divided by gross monthly income. Lenders use it to assess risk. Lower DTI (below 36%) means better loan terms. Above 43% may make approval difficult.

Should I include property tax and insurance in my affordability calculation? +

Absolutely. Property tax and home insurance are significant monthly costs that lenders include in your housing expense. Our calculator adds them to your monthly payment automatically.

What is a good down payment for a house? +

20% down avoids Private Mortgage Insurance (PMI) and may get better rates. However, many first-time buyers put 3-10% down with conventional or FHA loans. Our calculator works with any amount.

How does my credit score affect affordability? +

Higher credit scores (740+) qualify for lower interest rates, which increase affordability. Lower scores may require higher rates or larger down payments. Our calculator lets you adjust the rate to match your credit profile.

What about PMI (Private Mortgage Insurance)? +

If your down payment is less than 20%, lenders typically require PMI. Our calculator includes PMI automatically (estimated at 0.5% of loan amount annually) for down payments below 20%.

⭐ Pro tip: Use the calculator to run multiple scenarios. Try increasing your down payment or reducing monthly debts to see how much more house you can afford.