House Affordability Calculator – Max Home Price
Calculate the maximum home price you can afford based on income, debts, and down payment.
🏠 Finance📐 Max Payment = 28% of gross monthly income
Annual gross income ($)
Monthly debts ($)
Down payment ($)
Interest rate (%)
Please enter valid values.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| House Affordability Calculator – Max Home Price | Max Payment = 28% of gross monthly income | $ |
Step-by-Step Examples
Example 1
$100K, $400 Debt, $60K Down, 6.5%
Standard scenario.
- Max payment: $2,333 | Affordable: ~$428,000
✓ ~$428,000
Example 2
$80K, No Debt, $40K Down
Clean balance sheet.
- Affordable: ~$334,000
✓ ~$334,000
Example 3
Dual $150K Income
$500/month debt, $80K down.
- Affordable: ~$625,000
✓ ~$625,000
Real-World Applications
Home Buyers
Know your budget before house hunting.
Real Estate
Help buyers understand affordability.
Planners
Set realistic home purchase goals.
Mortgage Brokers
Pre-qualify customers quickly.
Common Mistakes to Avoid
⚠️
Buying at the maximum
Your max affordable price leaves no room for setbacks. Budget 10-20% below your maximum.
⚠️
Forgetting PITI
Add property tax, insurance, and HOA to the monthly cost — often $400-900/month extra.
Frequently Asked Questions
The 28% rule? ▾
Mortgage payment (principal + interest) should be at most 28% of gross monthly income.
Pre-approval vs affordability? ▾
Pre-approval is the lender maximum. Comfortable affordability may be much less.
How does debt affect affordability? ▾
Higher monthly debt payments reduce the mortgage amount you qualify for. Pay down debt before buying if possible.