Home Affordability Calculator
Determine how much house you can afford based on income and expenses
Your Financial Details
Your total household income before taxes
Car loans, student loans, credit cards, etc.
Cash available for down payment
Property Costs
Annual rate (varies by location)
Annual rate (typically 0.25-0.5%)
Debt-to-Income Limits
Max % of income for housing (standard: 28%)
Max % of income for all debts (standard: 36%)
What You Can Afford
Enter your details and click Calculate
Fill in the form to see how much home you can afford
Understanding Home Affordability
The 28/36 Rule
Lenders typically use the 28/36 rule to determine how much you can afford:
- 28% (Front-End Ratio): Your monthly housing costs should not exceed 28% of your gross monthly income
- 36% (Back-End Ratio): Your total monthly debt payments (including housing) should not exceed 36% of your gross monthly income
What's Included in Housing Costs?
- Principal and interest on your mortgage
- Property taxes
- Homeowners insurance
- Private Mortgage Insurance (PMI) if applicable
- HOA fees if applicable
Tips for Buying a Home
- Save at least 20%: Avoid PMI and get better rates
- Budget for closing costs: Typically 2-5% of home price
- Don't forget maintenance: Budget 1-2% of home value annually
- Get pre-approved: Know your budget before shopping
Disclaimer: This calculator is for informational purposes only and should not be considered financial, tax, or legal advice. Results are estimates based on the information provided and current tax laws. Consult a qualified professional for advice specific to your situation.
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