What is the House Affordability Calculator?
Estimate the home price you can afford with the 28/36 rule, your debts and current rates. The 28/36 guideline links home price to income and existing debt, giving a realistic starting point before you talk to a lender.
How to use the House Affordability Calculator
- Enter your annual gross income, your monthly debt payments, your down payment, your mortgage rate and the remaining fields.
- Results update automatically as you type; you can also press Calculate.
- Read the output: affordable home price, max monthly housing payment.
- Use the 📊 chart to see the result visually, then copy or share it.
Formula and method
Worked example
With annual gross income = $100,000, monthly debt payments = $500, down payment = $50,000, mortgage rate = 6.5 %, term = 30 years, the House Affordability Calculator returns affordable home price: $349,951.03; max monthly housing payment: $2,333.33.
Where the House Affordability Calculator helps in real life
You and your partner earn $110,000 combined, have a car payment and $40,000 saved. The calculator estimates the price range that keeps housing costs near 28% of income and total debt near 36%.
Mortgage rates rose while you were saving. Running the same inputs at the old and new rates shows how much the affordable price changed.
Common mistakes to avoid
- Forgetting property tax, insurance and HOA dues.
- Using the maximum a lender approves as the amount you should spend.
- Leaving out closing costs and moving expenses from your savings.
- Ignoring how private mortgage insurance affects the payment with a small down payment.
💡 Practical tip: Lenders may approve more than the 28/36 rule suggests; the lower figure leaves room for savings and surprises.
Tips for better results
- Keep a cash reserve after the down payment for repairs and emergencies.
- Get local property tax rates; they vary widely between areas.
- Check affordability at a rate slightly above today’s quote.
⚠️ These results are for educational purposes and are not financial advice. Confirm figures with your lender or a licensed financial professional before making decisions.
Frequently asked questions
What does the House Affordability Calculator do?
Estimate the home price you can afford with the 28/36 rule, your debts and current rates.
How is it calculated?
The House Affordability Calculator uses this method: Housing ≤ 28% of income and total debt ≤ 36%; Price solves: (Price − Down) × PMT factor + Price × tax% ÷ 12 = max payment.
Can you show an example?
With annual gross income = $100,000, monthly debt payments = $500, down payment = $50,000, mortgage rate = 6.5 %, term = 30 years, the House Affordability Calculator returns affordable home price: $349,951.03; max monthly housing payment: $2,333.33.
Is the House Affordability Calculator accurate?
It uses standard published formulas and is tested against known values, but results are estimates for guidance. These results are for educational purposes and are not financial advice. Confirm figures with your lender or a licensed financial professional before making decisions.
Is this tool free and private?
Yes — the House Affordability Calculator is completely free with no sign-up, and it runs entirely in your browser, so the values you enter are never uploaded to our servers.
Related tools
📬 Get new tools first — free
Join Taurang to hear about new calculators, converters and features. No spam; unsubscribe anytime.