House Affordability Calculator

Determine how much house you can afford based on your income, debts, and down payment.

100% Free No Sign-Up Calculated in Your Browser

Annual Gross Income

Monthly Debt Payments

Car loans, student loans, credit cards, etc.

Down Payment Available

Loan Term (years)

Annual Interest Rate (%)

Property Tax Rate (% of home value)

Annual Insurance ($)

Front-End Ratio Limit (%)

Max housing cost as % of gross income

Back-End Ratio Limit (%)

Max total debt as % of gross income

Maximum Home Price

based on your inputs

Max Loan Amount

Est. Monthly Payment

P&I + tax + insurance

Front-End Ratio

Back-End Ratio

Constraint	Max Housing/mo	Max Home Price	Status

Find the maximum home price you can afford based on your income, existing debts, down payment, and the front-end and back-end debt ratio limits lenders use to qualify borrowers.

How It Works

How House Affordability Calculator Works

The calculator first turns your income into two separate housing budgets: the front-end limit (your monthly gross income × the front-end ratio, e.g. 28%) and the back-end limit (monthly gross income × the back-end ratio, e.g. 36%, minus your existing monthly debt payments). Whichever budget is smaller becomes the binding constraint on how much house you can afford.

For each budget, the tool works backward through the mortgage math: it subtracts your monthly insurance cost, then solves for the home price where the remaining amount exactly covers principal & interest (using the standard amortization formula) plus property tax calculated as a percentage of that same home price — accounting for your down payment reducing the loan needed.

The lower of the two resulting home prices is your final affordability figure. The calculator then recomputes the actual monthly payment and both ratios at that price so you can see exactly which limit is binding and by how much room you have (or don't) under each rule.

Worked Example

See It In Action

With a $100,000 annual income, $500 in monthly debt, a $40,000 down payment, a 30-year loan at 6.5%, 1.2% property tax, and $1,500/year insurance: the front-end limit (28%) allows $2,333/month in housing costs, while the back-end limit (36% minus debt) allows $2,500/month. Because the front-end limit is smaller, it binds — producing a maximum home price of about $336,193 and a $296,193 loan, with a front-end ratio of exactly 28.0% and a back-end ratio of 34.0%, comfortably under the 36% cap.

Real-World Use Cases

Who Uses House Affordability Calculator and Why

Finding the maximum home price your income and debt load can realistically support before house-hunting.
Understanding whether your existing car loan or student loan payments are the binding constraint on how much house you can afford.
Testing how a larger down payment raises your maximum affordable home price.
Checking your front-end and back-end debt ratios against the standard lender limits (commonly 28% and 36%).

Common Mistakes

Mistakes to Avoid

Assuming a bigger income alone determines affordability — the calculator takes whichever of the front-end or back-end limit is smaller as the binding constraint, so high existing debt can cap your affordability well below what income alone would suggest.
Forgetting the result excludes HOA fees and maintenance costs — the calculation covers only principal & interest, property tax, and homeowners insurance, so a home with high HOA dues will have lower true affordability than shown.
Not accounting for existing monthly debt payments accurately — the back-end limit subtracts your entered debts directly from your income-based budget, so an understated debt figure inflates the affordability result.

Pro Tips

Tips for Best Results

Check which ratio (front-end or back-end) is binding in your result — if it's the back-end ratio, paying down existing debt before buying may raise your affordable price more than saving a bigger down payment.
Remember HOA dues and maintenance aren't included, so budget separately for those on top of the affordability figure this tool produces.

Troubleshooting

Fixing Common Problems

My affordability result seems lower than expected given my income. — Check your entered monthly debt payments — if the back-end ratio (which subtracts existing debt from your budget) is binding, reducing other debt before applying for a mortgage can raise your maximum affordable price more than increasing your down payment would.

Glossary

Terms Explained

Front-end ratio: Housing costs alone (principal, interest, tax, insurance) as a percentage of gross monthly income.

Back-end ratio: All monthly debt payments, including housing costs, as a percentage of gross monthly income — the more inclusive of the two ratios.

FAQ

Frequently Asked Questions

What's the difference between the front-end and back-end ratio?

The front-end ratio measures housing costs alone (principal, interest, tax, and insurance) against your gross income. The back-end ratio adds in all your other monthly debt payments — car loans, student loans, credit cards — against the same income, so it is always the more inclusive of the two.

Which ratio usually limits how much I can afford?

It depends on your existing debt load. Borrowers with little other debt are often limited by the front-end ratio, as in the example above; borrowers carrying significant car or student loan payments are more often constrained by the back-end ratio instead.

Does a bigger down payment raise my maximum home price?

Yes — a larger down payment reduces the loan amount needed for any given home price, which lowers the principal & interest portion of the monthly payment and leaves more of your housing budget available to support a higher price.

Does this include HOA fees or maintenance costs?

No — the calculation covers principal & interest, property tax, and homeowners insurance only. Homes with HOA dues or high maintenance costs will have a lower true affordability than this estimate shows, so budget for those separately.