House Affordability Calculator

Estimate how much house you can afford by combining your income, debts, down payment, interest rate, and loan term. This calculator provides a practical affordability range and monthly payment breakdown to support home-buying decisions.

Calculate Home Affordability
Estimate the home you can afford based on your income, debts, and down payment.

Your Estimated Affordability

Click "Calculate" to see your results.

How to Use the Calculator

  1. Enter your annual gross income: Provide your before-tax yearly income to estimate your available monthly housing budget.
  2. Add monthly debts and down payment: Include recurring debt payments and your expected down payment amount.
  3. Set interest rate and loan term: Choose your mortgage rate and a 15-year or 30-year loan term.
  4. Calculate affordability: Review your estimated maximum home price, loan amount, and payment breakdown.

What Impacts Home Affordability?

Debt-to-Income (DTI) Ratio

Lenders compare your monthly debts to gross monthly income. Lower DTI generally improves affordability.

Down Payment Size

A larger down payment reduces your loan balance and may lower monthly payments and PMI costs.

Interest Rate

Even small rate changes can significantly impact monthly payment and maximum affordable home price.

Loan Term Length

Longer terms often reduce monthly payments, while shorter terms can reduce total interest over time.

Frequently Asked Questions

How much house can I afford based on my salary?

Your affordability depends on income, monthly debts, down payment, mortgage rate, and loan term. This calculator combines those inputs to estimate a practical home budget.

Does this include taxes and insurance?

Yes. The estimate includes principal, interest, property taxes, home insurance, and PMI when applicable.

Why does a larger down payment increase affordability?

A higher down payment lowers the amount borrowed, which can reduce monthly mortgage costs and increase your affordable purchase price.

Is this a guaranteed mortgage approval?

No. This tool provides an estimate for planning purposes. Final approval depends on lender underwriting, credit profile, and local market factors.