Calcs4All

APR 23 · 2026

House affordability calculator

Estimate an affordable home price from income, debt, down payment, and housing-cost assumptions.

What this calculator covers

Estimate a home price range from income, debt, down payment, mortgage rate, taxes, insurance, and HOA assumptions.

The walkthrough keeps the housing-budget guardrails and mortgage math visible so the affordability estimate can be inspected rather than trusted as a black box.

Frequently asked questions

How much house can I afford?
A common rule of thumb keeps total housing costs (principal, interest, taxes, insurance) at or below 28% of gross monthly income, and total debt payments at or below 36%. This calculator applies those ratios along with your income, debts, down payment, and current rate to estimate an affordable price range.
What does this calculator include beyond the mortgage payment?
It factors in property taxes, homeowners insurance, and — when the down payment is below 20% — private mortgage insurance, so the affordability check reflects the full monthly housing cost rather than principal and interest alone.
Why does debt-to-income ratio matter for affordability?
Lenders use DTI to decide how much they'll lend. A lower DTI leaves more room in your budget for housing and signals that the new loan is sustainable. Most conforming loans cap total DTI around 43%–45%.
Is this the same number a lender will approve me for?
Close, but not identical. Lender decisions depend on credit score, employment history, reserves, loan program, and current underwriting guidelines. Use this number as a planning figure, then request a pre-approval for the actual loan amount.

Tool

Run the calculation

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RESULT · AFFORDABILITY

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Primary result

$400,224.88

With $120,000.00 of annual income and $750.00 in monthly debt, the modeled housing budget supports an estimated home price of about $400,224.88.

Max monthly housing budget
$2,800.00
Monthly principal & interest budget
$2,099.78
Estimated home price
$400,224.88

Step-by-step solution

  1. 1.Convert annual income to gross monthly income and apply the front-end and back-end ratios to find a maximum housing budget of $2,800.00 per month.
  2. 2.Subtract estimated monthly tax, insurance, and HOA costs to isolate about $2,099.78 for principal and interest.
  3. 3.Use the entered rate, term, and down payment to convert that payment budget into an estimated home price of $400,224.88.

Walkthrough

Visual walkthrough

Affordability combines income ratios, existing debts, and housing assumptions to estimate a workable home-price ceiling.

  1. 01

    Set the housing budget from income ratios

    Front-end and back-end ratios create two possible budgets; affordability uses the tighter of the two.

    $2,800.00 monthly housing budget

  2. 02

    Remove tax, insurance, and HOA costs

    Those non-mortgage housing costs reduce what can go toward principal and interest.

    $2,099.78 principal-and-interest budget

  3. 03

    Translate the payment into a home price

    Rate, term, taxes, and the down payment all influence the final estimated home price.

    $400,224.88 estimated home price