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Mortgage Affordability Calculator

Calculate how much house you can afford

Income

Gross Monthly Income ($)
Additional Income ($/month)

Debt & Expenses

Monthly Debt Payments ($)
Property Tax Rate (%)
Home Insurance ($/year)
PMI Rate (%)

Loan Details

Down Payment (%)
Interest Rate (%)
Loan Term (Years)
Front End Ratio (%)
Back End Ratio (%)

Affordability Formula

Maximum Payment = Income × Front-End Ratio
Maximum Total Debt = Income × Back-End Ratio
Affordable Price = (Max Payment - Taxes - Insurance) / Monthly Rate Factor
Monthly Rate Factor = r / (1 - (1+r)^-n)

Use this calculator to determine your maximum affordable home price based on your financial situation.

This is an estimate. Actual approval depends on credit score, debt-to-income ratio, and lender requirements.

Understanding Affordability

Key factors for mortgage approval:

Front-End Ratio

Housing costs as percentage of gross income (typically ≤ 28%).

Back-End Ratio

Total debt as percentage of gross income (typically ≤ 36%).

Credit Score

Higher scores qualify for better interest rates.

Down Payment

Larger down payment reduces monthly payments.

Example: $6,500 monthly income, 28/36 ratios. Maximum affordable house = ~$350,000 with 20% down at 6.5%.

Applications

Home Buying Mortgage Planning Budgeting Real Estate Financial Planning

Frequently Asked Questions

How much house can I afford?
Most lenders recommend housing costs not exceed 28-36% of gross monthly income.
What affects mortgage affordability?
Income, debt, credit score, down payment, interest rate, and loan term affect affordability.
What is the 28/36 rule?
Housing costs ≤ 28% of gross income. Total debt ≤ 36% of gross income.
How much down payment do I need?
Typically 3-20%. 20% avoids PMI. FHA loans allow 3.5% down.

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