Home Affordability Calculator: How Much House Can You Afford?
Buying a home is one of life’s largest financial transactions. Naturally, you want to know how much house you can afford before you fall in love with one outside of your budget. Using a home affordability calculator is a good first step to give you a ballpark number – and our calculator does the math for you.
After entering a few financial details, including your income and debts, we’ll give you an estimate of how much home you can afford and what your monthly mortgage costs could look like.
Key Takeaways:
- A home affordability calculator can give you an idea of how much house you can afford and monthly payments.
- A typical household income of about $111,000 is needed to comfortably afford the median home price of $426,747 in the U.S. using the 28% rule, according to Redfin.
- Your affordability number should reflect your full financial picture – not just the maximum loan amount a lender is willing to let you borrow.
What A Home Affordability Calculator Does
Home affordability calculators estimate the maximum home price you can comfortably afford based on your income, debts, down payment and local costs. Calculator outputs are often the first step in understanding your buying power before you start your home search and meet with mortgage lenders to get a more definitive picture.
Unlike a mortgage calculator, which breaks down monthly mortgage payments based on a home price, down payment amount and other loan items, an affordability calculator helps you understand the maximum home price you can afford.
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How To Use Our Home Affordability Calculator
Before you can see some numbers, our affordability calculator needs some key information.
Annual Household Income
This is your yearly gross income (before taxes), including your salary, bonuses, commissions, freelance income, investment returns and any other regular earnings. According to Redfin, a typical household income of about $111,000 is needed to comfortably afford the median home price of $426,747 in the U.S. as of late 2025.
Why it matters: Your income determines your borrowing capacity. Lenders calculate affordability as a percentage of your gross monthly income.
Example: You earn $90,000 per year. Your gross monthly income is $7,500. Lenders often use a rule that says you can afford up to 28% of your income for housing expenses, so that’s $2,100 monthly for principal, interest, taxes and insurance in this example.
Monthly Debt Payments
Add up minimum payments on all credit cards, student loans, car payments, personal loans and any other recurring debts. However, don’t include utilities, groceries, child care or other expenses that don’t appear on your credit report. However, do keep these in mind as you build out your home-buying budget.
Why it matters: The sum of your debts is a crucial part of your debt-to-income (DTI) ratio, one of the most important metrics that lenders use to approve you for a mortgage. High monthly debts reduce how much house you qualify for.
Example: You have a $500 car payment, $200 in student loan payments and a $100 minimum credit card payment. That puts your monthly debt at $800, creating a DTI that limits your home-buying budget even with strong income.
Calculator Tip: You can use the DTI ratio slider to change how much monthly income you’re putting toward your mortgage and other debts. This lets you see what various home prices and monthly mortgage payments look like along a spectrum of DTI – from comfortable to strained to difficult – ultimately helping you decide what housing payment fits into your monthly budget.
Down Payment Amount
This is how much cash you’ll put toward the purchase upfront. Your down payment can come from your own savings, investment proceeds, gift funds from family or down payment assistance programs. Some loan programs require zero down, such as Department of Veterans Affairs (VA) loans and United States Department of Agriculture (USDA) loans, but most loan programs require at least 3% to 5% down.
Why it matters: Larger down payments reduce your loan amount, lower your monthly payment and can eliminate mortgage insurance requirements. A 20% down payment on conventional loans removes private mortgage insurance (PMI) entirely.
Example: On a $400,000 home, here are different down payments and their respective loan amounts:
- 3.5% down Federal Housing Administration (FHA) loan: $14,000 upfront, $386,000 loan + financed FHA mortgage insurance
- 10% down conventional loan: $40,000 upfront, $360,000 loan and PMI
- 20% down conventional loan: $80,000 upfront, $320,000 loan and no PMI
State
Your location matters when it comes to affordability. Some states have higher home insurance and property taxes – all impacting how much your monthly payments will be.
Property Tax Rate
Property taxes are assessed annually based on your home’s value and are set by your local property assessor. Most lenders require you to pay property taxes from an escrow account so these payments stay current.
Interest Rate
Borrowing money comes with a cost known as interest. The percentage charged on your loan varies based on several factors, including your loan amount, credit score, down payment and more. Mortgage rates for a 30-year, fixed-rate mortgage range between 6-7% in 2026 as of April.
Why it matters: Even half of one percentage point changes your monthly interest payments significantly.
Example: On a $400,000 loan, here’s the difference in your monthly payment based on a slight change in interest rate:
- At 6%: $2,398 per month (principal and interest)
- At 6.5%: $2,528 per month (principal and interest)
- At 7%: $2,661 per month (principal and interest)
You’ll pay $130 more per month – or $46,800 over the course of 30 years – for the 6.5% loan versus the 6% loan. Meanwhile, you’ll pay $263 more per month, or $94,680 over the loan term, for a 7% loan compared to the 6% loan.
Optional Advanced Inputs
Our home affordability calculator lets you add more inputs to give you a clear look at your all-in housing costs. These optional inputs include:
- Loan term: Shorter loan terms mean higher monthly payments
- PMI: Required for conventional loans with less than 20% down; private mortgage insurance typically costs $30 to $70 per month for every $100,000 borrowed
- Homeowners association (HOA) fees: Could add $100 or more monthly to your housing expenses (usually paid separately)
- Homeowners insurance*: Averages $200 to $300 per month depending on location and coverage needs
*It’s worth noting that homeowners insurance premium increases have significantly impacted housing affordability in recent years. Home insurance premiums have soared 74% since the Great Recession while home prices climbed 40% during the same time period, according to the Joint Center for Housing Studies at Harvard University.
What The Calculator Won’t Tell You
Lenders might approve you at a higher DTI of 43% to 50%, but that doesn’t mean you should spend that much. You have to take into account other bills and financial goals that lenders don’t consider when they crunch their numbers.
To determine what monthly mortgage payment you can comfortably afford, consider the added expenditures of emergency savings, retirement contributions, groceries, child care and other expenses.
Homeownership also comes with additional expenses that can take new owners by surprise. These include:
- Home maintenance: Budget 1% – 2% of home value annually for routine repairs and upkeep.
- Utilities: This bill can jump considerably when you move from an apartment to a house, with monthly costs averaging $523 (including water, gas, electricity, sewer, internet and trash), according to Redfin..
- Lawn care, snow removal: This costs $100 to $300 monthly per service in some areas.
- Renovations: Costs vary widely depending on the home’s condition and local remodeling prices.
- Furniture and window treatments: Bigger spaces need more decor.
The 28/36 Rule: Understanding DTI Limits
Lenders often use the 28/36 rule as a guideline when looking at your DTI. As you evaluate loan options, though, you’ll see many lenders offer wiggle room on this calculation given how expensive homes have become. Here’s how it works:
- Front-end DTI (28%): Your housing costs shouldn’t exceed 28% of your gross monthly income.
- Back-end DTI (36%): All debt payments (including the new mortgage) should not exceed 36% of your gross monthly income.
DTI Example
Let’s say a borrower has $100,000 in annual income. Using the 28/36 rule, that translates to:
- Gross monthly income: $8,333
- Max housing payment (28%): $2,333
- Max total DTI (36%): $3,000
- Room for other monthly debts: $667
If you’re already spending $800 monthly toward a car payment, credit cards and student loans, you’d need to reduce your housing budget to stay under 36% total DTI, according to the rule. However, many loan programs offer a total DTI ratio of up to 43% to 50% to account for higher home prices. The higher your DTI is, though, the tighter your budget will be.
FAQ
Bottom Line: Using A Home Affordability Calculator Is A Good First Step
If you’re asking yourself, “How much house can I afford?” a home affordability calculator offers an excellent starting point – but it’s not the finish line. While a calculator can give you a good idea of the maximum amount a lender might approve for you, keep in mind that this number is often higher than what you can comfortably afford.
Understand how much house you can afford, and explore the Home Affordability Calculator from Quicken Loans.
