House Affordability Calculator
How much house can you afford? Calculate your maximum home price based on income, debts, and down payment. See the full monthly payment breakdown or compare conservative vs stretch budgets. Works with any currency.
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How to Use This Calculator
Tab "Max Price"
Enter your gross annual income, monthly debts, down payment, mortgage rate, loan term, property tax rate, and annual insurance. The calculator determines your maximum affordable home price using the 28% front-end DTI rule: your total housing payment (principal, interest, tax, insurance) must not exceed 28% of gross monthly income.
Tab "Payment Breakdown"
Using the same inputs, see exactly where your monthly housing payment goes: principal & interest, property tax, homeowners insurance, and PMI (if your down payment is less than 20%). The table shows each category's dollar amount and percentage share of the total payment.
Tab "Conservative vs Stretch"
Compare three DTI levels side by side: conservative (28%), comfortable (33%), and stretch (40%). See how much more house you could afford by stretching your budget — and the increased monthly cost and risk that comes with it.
The Formulas
Max Housing = (Gross Annual Income / 12) × 0.28
Monthly principal & interest (amortization):
M = L × [r(1+r)n] / [(1+r)n − 1]
where L = loan amount, r = monthly rate (annual rate / 12 / 100), n = total payments (years × 12)
Maximum loan amount (inverse amortization):
L = M × [1 − (1+r)−n] / r
Maximum home price:
Max Price = Max Loan + Down Payment
Monthly property tax:
Monthly Tax = Home Price × Tax Rate / 100 / 12
PMI (if down payment < 20%):
Monthly PMI = Loan Amount × 0.007 / 12
The max price calculation is iterative: property tax depends on the home price, which depends on the available payment after tax. The calculator converges in a few iterations. All calculations are universal and pre-tax.
Worked Examples
Example 1 — $100K income, $60K down, 6.5% rate
A household earning $100,000 per year with $60,000 saved for a down payment. Mortgage rate 6.5%, 30-year term, 1.2% property tax, $1,500 annual insurance.
With 14.7% down, PMI applies at roughly $203/mo. The total monthly housing cost is approximately $2,333.
Example 2 — First-time buyer: $70K income, $25K down
A first-time buyer earning $70,000 with $25,000 for a down payment. Same rate and terms.
With only 9% down, PMI adds about $148/mo. The buyer may want to explore FHA loans or first-time buyer programs.
Example 3 — High income: $200K, $150K down
A high-income household earning $200,000 with $150,000 available for a down payment.
Even with $150K down, the high price means the down payment is under 20%. Putting down an additional ~$20K would eliminate PMI and save roughly $400/mo.