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Calculation Machine

House Affordability Calculator

The price range your income and debts actually support.

Reviewed by the Calculation Machine team · How we check our maths

Your values

ⓘ Live results

Results
Maximum home price
$323,546.51
Maximum loan
$273,546.51
Max total housing payment
$2,216.67
Principal & interest portion
$1,729.00

Quick answer

Lenders generally allow housing costs up to 28% of gross income and total debt up to 36%, which sets the maximum home price you qualify for.

Worked example

Worked example

Using the values the calculator loads with.

Inputs

  • Gross annual income95000 $
  • Monthly debt payments500 $
  • Down payment saved50000 $
  • Interest rate6.5 %
  • Term30 years

Result

  • Maximum home price$323,546.51
  • Maximum loan$273,546.51
  • Max total housing payment$2,216.67
  • Principal & interest portion$1,729.00

How to use the House Affordability Calculator

  1. 1Enter your gross annual income and existing debt payments.
  2. 2Add your down payment and the current rate.
  3. 3Read the affordable price range.

Frequently asked questions

Should I borrow the maximum?

Rarely. The maximum is what a lender allows, not what leaves room for savings, repairs and rate changes — many buyers target 20–25% of income.

Why is 22% held back?

Property tax, insurance and possible HOA fees take a meaningful slice of the housing budget before principal and interest.

About this calculator

How lenders decide what you can afford

Lenders look mainly at debt-to-income ratios. A common guideline is that housing costs should stay under about 28% of gross monthly income and all debts, including the new mortgage, under about 36% (some loan programmes allow 43% or more). The calculator applies those limits to your income, debts, down payment and rate.

What a lender approves is a ceiling, not a recommendation. Leave room for maintenance, insurance and savings.

Before you shop

  • Include property tax, insurance and HOA fees — they can add 20–40% to the mortgage payment.
  • Budget 1–2% of the home price a year for maintenance.
  • Keep an emergency fund after the down payment and closing costs.
  • Get pre-approved to see the rate you actually qualify for.

Sources

More questions

What is the 28/36 rule?

Housing costs under 28% of gross income and total debts under 36%.

How much house can I afford on $100,000 a year?

At 28% that is about $2,330 a month for housing, which supports roughly a $300,000–$350,000 loan at 6.5–7%, depending on taxes and insurance.