Home › Financial › House Affordability Calculator
FREE · NO SIGN-UP · TRANSPARENT FORMULAS

House Affordability Calculator

Explore a home-price budget using your income, debts and chosen payment limits.

Your numbers

Make it your own
Updates as you type
Illustrative home-price budget
$328,958.39

USD · rounded to the nearest cent

Supported loan principal$268,958.39
Housing payment ceiling$2,100.00
Principal and interest budget$1,700.00

Scenario arithmetic only, not loan approval or a lending recommendation. Ratios are your assumptions, not universal rules. No closing costs, PMI or automatic property-tax estimate.

Your calculation, step by step

No black boxes
  1. Monthly gross income = 7,500 USD.
  2. Housing ceiling = max(0, min(income × housing ratio, income × debt ratio − other debt)) = 2,100 USD/month.
  3. Subtract entered tax, insurance and HOA; amortize the remaining 1,700 USD/month.
  4. Add down payment 60,000 USD to the supported principal.

What if things were different?

Save up to three scenarios, then change your inputs to compare the possibilities.

How to use this calculator

  1. Enter your own values in the labeled fields. Check the units and assumptions before comparing results. Only the fields needed for your selected calculation mode are shown.
  2. Your answer updates automatically. Review the calculation steps to see exactly how it was calculated.
  3. Copy, share, save, or download your result. Saved inputs stay on this device.

How the calculation works

Housing ceiling = min(income × housing ratio, income × debt ratio − other debt)

The two ratios are adjustable scenario assumptions. First determine the lower monthly housing ceiling, then remove the entered property tax, insurance and HOA costs. Convert the remaining principal-and-interest budget to a loan amount and add the down payment. A lender may use different rules and additional costs.

A worked example

With $120,000 annual gross income, a 30% housing ceiling gives $3,000 monthly. If taxes, insurance and HOA total $500, principal and interest have a $2,500 budget.

Reading your result

Use the main result together with its units and supporting figures. Display values are rounded; calculations keep their underlying precision. A change in inputs or assumptions can change the answer. Compare the step-by-step working with your intended use before relying on an estimate.

Frequently asked questions

Is this lender approval?

No. Credit, lending policies and other conditions are not assessed.

Is property tax automatically estimated?

No. Enter your own monthly allowance; PMI and closing costs are excluded.

Sources & methodology

This calculator uses the mathematical identity and assumptions stated above. No current rates, prices, or external data are loaded. Conversion tools use international unit definitions.

Formula review: October 24, 2026. Read our methodology.