House Affordability Calculator
Use our free house affordability calculator to estimate the maximum home price you can comfortably afford. This tool factors in your income, monthly debts, down payment, loan term, interest rate, and taxes to give you a realistic budget for buying a home. Homeownership is one of the biggest financial decisions you’ll ever make. This calculator helps you set a clear price range before you start house hunting so you can focus on homes that truly fit your budget. It also reveals how lenders evaluate affordability using debt-to-income ratios (DTI), showing exactly how much you can borrow without stretching your finances too thin.
House Affordability Formula
Understanding affordability helps prevent overextending your budget. Lenders look at more than income; they evaluate debt, interest rates, and taxes. The House Affordability Calculator combines these factors to give you a real-world estimate, not an inflated prequalification number. It’s the fastest way to find a price range that fits your lifestyle and financial goals.
How this house affordability calculator works
This calculator estimates the maximum mortgage and home price you can qualify for and still live comfortably. It analyses your full financial picture and adjusts for local conditions.
Here’s what it considers:
Adjust each variable to test different scenarios, like a higher down payment or lower rate, to see how they change your maximum affordable home price.
When to use this house affordability calculator
Use this calculator whenever you’re preparing to buy a home, refinance, or set a financial goal for future homeownership.
Before house hunting: Identify your price range to save time and avoid overbidding.
Before pre-approval: Understand what lenders will realistically approve.
To plan your savings: See how different down payments affect affordability.
When comparing markets: Adjust taxes and insurance to reflect local costs.
During rate changes: Quickly test how rising or falling rates shift affordability.
For long-term planning: Estimate affordability for future income levels or debt payoffs.
Want to make your home planning smarter?
Use ServiceAgent.ai to automate estimates, manage proposals, and track profitability—all from one dashboard.
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Typical Mortgage Ratios and Market Averages
Use these benchmarks to understand how lenders and financial advisors gauge affordability.
Front-End DTI (housing-only)
Back-End DTI (all debts)
Average U.S. property tax
Homeowners insurance
Recommended down payment
Current 30-year mortgage rate
These averages help buyers benchmark their affordability and negotiate more confidently.
Frequently Asked Questions
It’s a tool that estimates how much home you can afford based on income, debts, down payment, and interest rate.
Income, debts, down payment, interest rate, and loan term.
Yes—just include HOA dues if applicable.
Absolutely. It helps estimate purchase budgets for rental properties.
Yes—lenders typically allow 28–31% for housing, but you can change it for your scenario.
No—closing costs are separate and typically 2–5% of the purchase price.
Yes—input the initial interest rate for an estimate, but note future adjustments may change affordability.
Pair it with ServiceAgent.ai to automate affordability estimates, client proposals, and loan tracking.