What this calculator shows you
Buying a home is probably the biggest purchase you'll ever make, and guessing at the price tag is a stressful way to start. This home affordability calculator answers the question on your mind, how much house can I afford, using the same numbers a lender checks: your income, your monthly debts, your down payment, and today's mortgage rate. You get a target price range and an estimated monthly payment, so you can shop with a real budget instead of a hunch.
Enter your gross annual income
Type in what you earn before taxes. Buying with a partner? Add both incomes together.
Add your monthly debt payments
Include car loans, student loans, minimum credit card payments, and any other fixed debt. The calculator uses this to see how much room is left for a mortgage.
Set your down payment
Enter the cash you plan to put down. A bigger down payment shrinks your loan and lowers your monthly cost.
Choose your rate and loan term
Plug in a current mortgage rate (APR) and pick your term, usually 30 or 15 years.
Read your result
You'll see a home price range and an estimated monthly payment. Adjust any number to watch the budget move in real time.
What counts as monthly debt
Car loans and leases, using the full monthly payment
Student loan payments, even if some are currently deferred
Minimum credit card payments, not your total balance
Personal loans and any buy-now-pay-later plans
Child support or alimony you're required to pay
Skip everyday costs like groceries, gas, and utilities. Lenders don't count those toward your debt ratio.
How the calculator does the math
Lenders mostly care about two ratios, and the calculator uses both. The first is the 28% rule: your total housing payment should stay under 28% of your gross monthly income. The second is the 36% rule: your housing payment plus all other debt should stay under 36%. Your budget is whichever limit you hit first.
Here's how that plays out. Say you earn $90,000 a year, which is $7,500 a month before taxes. The 28% rule caps your full housing payment at about $2,100 a month. Set aside roughly $350 of that for property taxes and insurance, and you have about $1,750 left for principal and interest. At a 6.5% rate over 30 years, that supports a loan of around $277,000. Add a $60,000 down payment, and you're shopping for homes near $335,000.
Costs the price tag hides
Your monthly payment is more than principal and interest. Lenders bundle four things into what they call PITI: principal, interest, property taxes, and homeowners insurance. If your down payment is under 20%, you'll usually pay private mortgage insurance (PMI) on top, and a condo or planned community adds HOA dues.
Then there's the cash you need up front. Closing costs typically run 2% to 5% of the loan, and that's separate from your down payment. Budget for moving, early repairs, and a cushion for the surprises every homeowner eventually meets.
Ways to stretch your budget
Pay down a debt before you apply. Clearing a car loan or credit card frees up room under the 36% limit and can lift your price range fast.
Save a larger down payment. More cash down means a smaller loan, a lower payment, and a chance to skip PMI once you cross 20%.
Shop your mortgage rate. Even half a percent changes your payment and the price you qualify for, so get quotes from a few lenders.
Check your credit report first. A higher FICO score earns a better rate. Pull your reports, fix any errors, and hold off on opening new accounts before you buy.
Leave yourself breathing room. Qualifying for a number isn't the same as being comfortable with it. Aim for a payment you could still cover during a tight month.
Frequently asked questions
How much income do I need to buy a $400,000 house?
With 20% down ($80,000) and a 6.5% rate, the loan on a $400,000 home runs about $2,000 a month in principal and interest, or roughly $2,400 once you add taxes and insurance. Under the 28% rule, that points to gross income around $105,000 a year, less if you carry little other debt. Run your own numbers above for a precise answer.
What is the 28/36 rule?
It's the guideline most lenders lean on. Keep your housing payment under 28% of your gross monthly income, and keep your housing plus all other debt under 36%. Staying inside both numbers signals you can handle the loan without stretching too thin.
How much should I put down on a house?
Twenty percent is the classic target because it lets you skip private mortgage insurance and lowers your payment. You can buy with far less, though. Many conventional loans allow 3% to 5% down, and some government-backed programs go lower. More money down almost always means a cheaper loan over time.
Does my credit score change how much I can afford?
Yes, indirectly. Your FICO score (300 to 850) drives the interest rate a lender offers, and a lower rate means a smaller payment for the same loan. A strong score can stretch your budget by tens of thousands of dollars over a 30-year term.
Should I borrow the full amount the calculator shows?
Not necessarily. The result is a ceiling based on ratios, not a comfortable budget for your actual life. Factor in savings goals, childcare, travel, and the lean months, then settle on a payment you'd still feel fine about if your income dipped.
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