Free Home Affordability Calculator
Our Home Affordability Calculator is a powerful, free tool designed to help you determine how much house you can comfortably afford. Whether you're a first-time homebuyer or looking to upgrade, this calculator provides valuable insights into your home purchasing budget.
Understanding your home affordability is crucial before starting your property search. By analyzing your income, debts, down payment, and current interest rates, our calculator helps you set realistic expectations and avoid financial strain.
100% Free
No hidden fees, no registration required - completely free to use.
Secure & Private
Your data never leaves your browser - all calculations happen locally.
Mobile Friendly
Works perfectly on all devices - smartphones, tablets, and desktops.
How Our Calculator Works
Our Home Affordability Calculator uses the standard 28/36 rule to determine how much house you can afford. This rule is widely used by lenders to evaluate mortgage applications.
28%
Front-End Ratio
Your total housing costs (mortgage, taxes, insurance) should not exceed 28% of your gross monthly income.
36%
Back-End Ratio
Your total debt payments (housing + other debts) should not exceed 36% of your gross monthly income.
The Calculation Process
- Calculate your gross monthly income (annual income divided by 12)
- Determine your maximum allowable housing expense (28% of monthly income)
- Calculate your total monthly debt obligations
- Determine your maximum total debt (36% of monthly income)
- Calculate your maximum mortgage payment based on both ratios
- Factor in your down payment and loan terms
- Calculate the maximum home price you can afford
Home Buying Tips
Buying a home is one of the most significant financial decisions you'll make. These tips can help you navigate the process more effectively:
Get Pre-Approved
Before house hunting, get pre-approved for a mortgage. This shows sellers you're serious and helps you understand exactly how much you can borrow.
Budget Beyond the Mortgage
Remember to account for property taxes, insurance, maintenance, utilities, and potential HOA fees when budgeting for your new home.
Improve Your Credit Score
A higher credit score can qualify you for better interest rates. Pay down debts and correct any errors on your credit report before applying for a mortgage.
Save for a Larger Down Payment
A 20% down payment helps you avoid private mortgage insurance (PMI) and can result in lower monthly payments.
Frequently Asked Questions
How accurate is this calculator?
Our calculator provides a reliable estimate based on standard lending practices. However, actual loan approval amounts may vary based on your credit history, employment status, and specific lender requirements.
What is included in "monthly debts"?
Monthly debts include all recurring obligations: car payments, credit card minimum payments, student loans, personal loans, child support, alimony, and any other regular debt payments. Do not include utilities or groceries.
Should I buy at the maximum I can afford?
We generally recommend buying below your maximum affordability. This gives you financial flexibility for unexpected expenses, home improvements, and saving for other goals. Consider your lifestyle and future financial plans when deciding.
How does my credit score affect affordability?
Your credit score significantly impacts the interest rate you'll qualify for. Higher scores typically mean lower interest rates, which can increase your purchasing power. Lower scores may result in higher rates, reducing the amount you can afford.
Are property taxes and insurance included?
Our calculator estimates property taxes and insurance based on standard percentages. However, these costs vary by location and property type. For a more accurate estimate, research local tax rates in your desired area.