Home affordability calculator
Enter your income, debts and down payment to see the most a lender would let you spend and the monthly payment at that price.
You can afford a home up to
$326,192.24
$2,216.67 a month at 6.5% with $40,000.00 down
How to use it
- Enter your gross yearly income and the monthly payments on any debts you already have.
- Enter your down payment and the rate you've been quoted.
- Pick the lending rule. Conservative is what most advisers suggest; the typical maximum is what many lenders will actually approve.
- Read the maximum price. The rows show the payment at that price and how much of your income it takes.
Worked example
Income $95,000, $450 a month in debts, $40,000 down, 6.5% over 30 years, conservative rule.
Monthly income is $7,916.67. Housing cap is 28%: $2,216.67. Debt cap is 36% minus $450: $2,400.00. The lower one, $2,216.67, is the budget. With tax and insurance at 1.5% of the price a year, that buys a home up to $326,192.24: a $286,192 loan costing $1,808.93 a month plus $407.74 tax and insurance, 33.7% of income with the other debts.
How this is calculated
Lenders cap your housing payment at a share of monthly income (28% or 31%) and cap housing plus other debts at a larger share (36% or 43%); the smaller of those two limits is the most you can spend each month on principal, interest, tax and insurance. From that payment the calculator works back to the price: with k the monthly payment per dollar of loan at your rate and term, and t the yearly tax-and-insurance rate divided by 12, the maximum price is (payment + down payment × k) ÷ (k + t), rounded down to the cent. Lenders also weigh credit score, reserves and loan type, so treat this as a guide, not a pre-approval.
maximum housing payment = the smaller of (income ÷ 12 × housing ratio) and (income ÷ 12 × total debt ratio − monthly debts)
That payment covers principal, interest, tax and insurance. With k the monthly payment per dollar of loan and t the yearly tax-and-insurance rate ÷ 12:
maximum price = (maximum payment + down payment × k) ÷ (k + t)
loan = maximum price − down payment. The result is rounded down to the cent so the payment never exceeds the limit.
Rates, sources and limits
Lenders also weigh credit score, reserves and loan type. This is a general estimate, not a pre-approval or financial advice.
Last reviewed 13 Sep 2026 by the CalcRabbit team. Estimates only, not financial, tax or medical advice.
Frequently asked questions
Is the maximum what I should spend?
No. It's what a lender's ratios allow. Childcare, commuting, retirement saving and an emergency fund aren't in the formula. Many people are more comfortable 10% to 20% below the conservative figure.
What counts as a debt payment?
Anything on your credit report with a monthly payment: car loans, student loans, personal loans, and the minimum payment on credit cards. Rent, utilities, phone plans and insurance don't count.
Does a bigger down payment raise the price much?
Dollar for dollar, roughly. Every extra $10,000 down adds about $10,000 to the price while leaving the payment unchanged, and crossing 20% removes mortgage insurance, which frees up more of the payment for principal.
Why does the rate change the answer so much?
Because the payment limit is fixed by income, a higher rate means each dollar of payment buys less loan. Going from 5.5% to 7% cuts the affordable loan by about 15%.