Free Finance Tool

Home Affordability Calculator

Work out how much house you can afford before you speak to a lender. This home affordability calculator uses the same debt to income limits underwriters apply, then shows the maximum price, the full monthly payment and how much room you have left each month.

  • Real lender DTI rules
  • Taxes, insurance and PMI included
  • Rate stress test
  • Nothing is uploaded
Lending profile
Cards, car, student loans. Not rent or bills.
Cash you will put towards the purchase.

Your figures update as you type.

Home price you can afford 0 Comfortable range
  • 0Monthly payment
  • 0Loan amount
  • 0%Down payment
  • 0%Total DTI
Where the monthly payment goes
    Raise your down payment above twenty percent and the mortgage insurance line disappears, which pushes your affordable price higher.

    Why this affordability calculator is more honest

    Bank calculators are built to show you a big number. This one shows the number plus everything that eats into it, so the payment you plan for is the payment you actually make.

    Three lending profiles

    Switch between the cautious 28/36 rule, the typical 31/43 approval limit and the 36/50 maximum some lenders will stretch to.

    The full payment, not just the loan

    Property tax, insurance, HOA fees and mortgage insurance are all built in, because lenders count every one of them against your ratio.

    Automatic PMI handling

    Put less than twenty percent down and mortgage insurance is added automatically, then removed the moment your deposit crosses the line.

    Rate stress test

    See what the same house costs if rates were one point higher, which is the quickest way to judge whether a budget is really safe.

    Comfortable range shown

    Alongside the maximum you get a cautious figure, so you can see the gap between what a lender allows and what leaves you breathing room.

    Private and instant

    Your income and debts never leave the browser. No email capture, no lead form, no broker calling you afterwards.

    How to work out how much house you can afford

    1. Enter income before tax

      Lenders work from gross annual income, not take home pay. Include reliable bonus or overtime only if you can evidence two years of it.

    2. Add every monthly debt

      Car payments, minimum card payments, student loans and personal loans all count. Utilities, groceries and current rent do not.

    3. Set your deposit and rate

      Enter the cash you will actually put down after closing costs, then a realistic rate for your credit profile rather than the headline advert.

    4. Compare the profiles

      Check the maximum against the cautious figure. If they are far apart, buying near the top of the range will leave very little slack.

    How lenders decide what you can borrow

    Approval comes down to two debt to income ratios. The front end ratio compares your housing payment with your gross monthly income. The back end ratio compares all your debt payments, housing included, with the same income. Your affordable price is set by whichever limit you hit first.

    ProfileFront endBack endWho it suits
    Cautious28%36%Buyers who want savings, travel and slack in the budget
    Typical31%43%The common approval band for a qualified mortgage
    Maximum36%50%Strong credit and reserves, where lenders will stretch

    Two buyers on identical salaries can be approved for very different amounts. A car loan of four hundred a month can cut roughly sixty to eighty thousand off the price you qualify for, which is why clearing debt before applying often beats saving a little longer.

    Costs the calculator cannot see

    • Closing costs. Budget roughly two to five percent of the price on top of your deposit, and remember that money cannot also be the down payment.
    • Maintenance. A common planning figure is one percent of the home value a year, which is easy to forget when the payment already feels tight.
    • Moving and furnishing. First year costs land in the months when your savings are at their lowest, so leave a cushion.
    • Rate changes. On a variable or short fixed deal, the stress test figure matters more than the current payment.
    • Life changes. A payment that works for two incomes may not work for one. Ask whether the number still holds through a career break.
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    Home affordability FAQ

    How much house can I afford on my salary?
    A rough guide is three to four times gross annual income, but the honest answer depends on your debts, deposit and interest rate. Someone earning ninety thousand with no debts and twenty percent down can afford far more than someone on the same salary with a car loan and five percent down. Enter your own figures above for a number that reflects your situation.
    What is the 28/36 rule?
    It says your housing payment should stay under twenty eight percent of gross monthly income, and all your debt payments together under thirty six percent. It is stricter than most lenders require, which is exactly why it remains a sensible personal ceiling rather than an approval limit.
    Does my down payment change what I can afford?
    Yes, twice over. It reduces the amount you borrow, and once it passes twenty percent it removes mortgage insurance from the monthly payment. That freed up money goes straight back into the payment the lender allows, so the affordable price rises by more than the deposit itself.
    Should I borrow the maximum I am approved for?
    Usually not. Approval limits are based on gross income and ignore childcare, pensions, commuting and savings goals. Many buyers find the cautious figure is the one they can live with, and the gap between the two is the amount of financial stress you are choosing to take on.
    Do lenders count my rent as a debt?
    No. Current rent disappears when you buy, so it is left out of the ratio. Only ongoing obligations that survive the purchase are counted, such as car finance, credit card minimums, student loans and child support.
    How does paying off a car loan help?
    Every hundred a month of debt you clear frees the same hundred for a housing payment, which at typical rates buys roughly fifteen to twenty thousand more house. Clearing a four hundred a month car loan often moves the number more than another year of saving.
    What if interest rates rise before I buy?
    Your affordable price falls. As a rough rule, each one point rise cuts buying power by around ten percent. The stress test line under your result shows this directly, so you can see whether your shortlist still works at a higher rate.
    Is this the same as a mortgage pre-approval?
    No. This is an estimate based on the numbers you enter. A pre-approval involves a credit check, verified income and a lender committing in writing. Use this to set your search range, then get pre-approved before you make an offer.

    Know your number before you start viewing

    Bookmark this home affordability calculator and rerun it whenever your deposit, debts or rates change. It is free, private, and it takes under a minute.

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