$320,011
$270,011
$2,100.00
$2,100.00
$288,923
$1,875.00
$2,100.00
$2,300.00
15.62
%
$293.34
$320,011
$270,011
$2,100.00
$2,100.00
$288,923
$1,875.00
$2,100.00
$2,300.00
15.62
%
$293.34
The Home Affordability Calculator determines how much house you can afford based on your income, debts, down payment, and current mortgage rates. This calculator uses the industry-standard 28/36 rule and also provides a more conservative 25% guideline for comfortable affordability.
Buying a home is the largest financial commitment most people make. Stretching too far can lead to being house poor — owning a nice home but struggling with everyday expenses. Conversely, being too conservative might mean missing out on a home that could build significant wealth through appreciation. This calculator helps you find the right balance.
The 28% front-end ratio limits total housing costs (mortgage P&I, property taxes, insurance, HOA) to 28% of gross monthly income. The 36% back-end ratio limits all debt payments (housing plus car loans, student loans, credit cards, etc.) to 36% of gross income. The calculator uses whichever is more restrictive for your situation.
In addition to the maximum qualification price, this calculator shows a comfortable price based on the more conservative 25% rule recommended by many financial planners. This lower figure provides more breathing room for savings, emergencies, and lifestyle expenses.
Remember that the down payment affects affordability in two ways: it increases the price you can afford (since it's added to the maximum loan amount), and a larger down payment means a smaller loan with lower monthly payments. If you can put 20% or more down, you also avoid private mortgage insurance (PMI), further reducing your monthly costs.
Max Monthly Housing = min(Income × 28%, Income × 36% − Debts)
Available for P&I = Max Housing − Taxes − Insurance − HOA
Max Loan = Available P&I × [(1+r)n − 1] / [r × (1+r)n]
Max Home Price = Max Loan + Down Payment
The comfortable price uses a 25% income allocation instead of 28%, providing more financial flexibility.
The max home price is the most expensive home you could qualify for — but not necessarily what you should buy. The comfortable price (25% rule) is a safer target that leaves room for other financial goals. If you have high existing debts, the back-end ratio may be binding, reducing your buying power. Consider paying off debts before house hunting.
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On $90K income, you can afford up to ~$354K (max) or ~$306K (comfortable).
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Results
No debts means front-end ratio is the binding constraint.
Using the 28% rule: multiply your monthly gross income by 0.28 for your max housing payment. Then use the mortgage formula to convert that to a home price. This calculator does it automatically.
The 28% rule limits housing costs to 28% of gross income. The 36% rule limits total debts to 36%. Lenders use these ratios to qualify borrowers, though some programs allow higher ratios.
Generally no. Financial experts recommend the 25% rule (25% of gross income on housing) for a comfortable budget. Buying at the maximum can leave you house poor with no room for savings or emergencies.
A larger down payment increases the home price you can afford (same loan amount buys a cheaper or more expensive home). It also eliminates PMI at 20%+, reducing monthly costs.
Student loans reduce your affordability by consuming part of the 36% back-end ratio. Paying off or reducing student debt before buying increases your mortgage qualification.
PMI is not explicitly included in this basic calculation. If your down payment is less than 20%, add 0.5-1% of the loan amount annually to your housing costs, which reduces affordability.
HOA fees are counted as housing costs in the 28% front-end ratio. High HOA fees (e.g., $300-500/month) can significantly reduce the mortgage payment you can afford.
Gross income before taxes: salary, bonuses (2-year average), overtime, commissions, rental income, investment income, and other documented recurring income.
Buying builds equity and provides stability but has higher upfront costs and less flexibility. Compare total costs including opportunity cost of down payment, maintenance (1-2% of home value annually), and expected appreciation.
Aim for 20% to avoid PMI, but 5-10% is possible with conventional loans, 3.5% with FHA, and 0% with VA/USDA. Also save 2-5% for closing costs and 3-6 months of expenses as an emergency fund.
Roboculator Team
The Roboculator Team explains calculations, planning tools, and practical formulas in clear language for real-life situations.
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