What is the House Affordability Calculator?
Estimate the home price you can afford with the 28/36 rule, your debts and current rates. Money decisions are easier when you can see the numbers. Our finance calculators use the same standard formulas banks and financial planners use — amortization, compound interest and present-value math — so you can compare options before you commit.
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.
Tips for better results
- Compare at least two scenarios (for example, a 15- vs 30-year term) before deciding.
- Small rate differences compound: a 0.5% lower rate can save thousands over a long loan.
- Results are estimates; your lender’s fees, taxes and exact day-count rules may change the final figure.
⚠️ 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.