How Much House Can I Afford?

Income

$

Your income before taxes

$

Rental income, side business, etc.

Monthly Debts

$
$
$
$

Down Payment & Loan Details

$
%
Disclaimer: This calculator provides estimates for educational purposes only. Results are not guaranteed and should not be considered financial, investment, or tax advice. Always consult with qualified professionals before making financial decisions. Read Full Disclaimer

You can afford a home up to

$385,000

Price range: $350K - $385K

Debt-to-Income Ratio

28%
Excellent

Lower is better. Most lenders prefer under 36%.

Monthly Payment Breakdown

Principal & Interest $1,747
Property Tax (est.) $385
Home Insurance (est.) $115
PMI (if applicable) $0
Total Housing Payment $2,247

Key Affordability Metrics

Monthly Gross Income $6,667
Total Monthly Debts $700
Available for Housing $2,400
Down Payment % 15.6%
Loan Amount $325,000

💡 Tips to Afford More Home

  • Increase down payment to 20% to eliminate PMI
  • Pay off high monthly debts like credit cards
  • Improve credit score for better interest rates
  • Consider a co-borrower to increase income
  • Look at first-time buyer programs in your area

Understanding Home Affordability

Our home affordability calculator uses the 28/36 rule, a time-tested guideline used by lenders to determine how much house you can afford.

The 28/36 Rule Explained:

  • 28% Rule: Your monthly housing payment shouldn't exceed 28% of gross monthly income
  • 36% Rule: Your total monthly debts shouldn't exceed 36% of gross monthly income

What's Included in Housing Payment:

  • Principal and interest on mortgage
  • Property taxes (estimated at 1.2% annually)
  • Homeowners insurance (estimated at 0.35% annually)
  • PMI if down payment is less than 20%
  • HOA fees (if applicable)

Note: This calculator provides estimates. Actual approval amounts may vary based on credit score, employment history, and lender requirements.