Affordability Calculator
How Much House Can You Afford?
Before you fall for a listing, find out what price range your budget actually supports. This home affordability calculator weighs your income, monthly debts, down payment and housing costs against a common lender guideline to estimate a maximum purchase price you can shop with confidence.
Interactive tool
Estimate your home budget
Shopping without a price ceiling is how buyers end up stretched thin. Enter your financial picture below and the calculator sizes a payment, a loan amount and a matching home price in real time.
Estimated price range
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Home price at a 28%/36% debt-to-income guideline
- Max monthly housing payment —
- Estimated loan amount —
- Principal & interest —
- Tax & insurance —
- Limiting factor —
Estimates for planning only, not a loan offer, rate quote or commitment to lend. Actual terms depend on credit, income, property, program guidelines and underwriting. Some programs allow higher debt-to-income ratios; others are stricter.
How to use it
Getting a useful affordability estimate
Start with gross income
Use household income before taxes and deductions, the same figure lenders evaluate. Include only income you can document.
List required monthly debts
Add minimum payments on car loans, student loans, credit cards and other recurring obligations that show on a credit report. Everyday bills like utilities and groceries don't belong here.
Enter savings and loan assumptions
Plug in your planned down payment, a test interest rate, the loan term and estimated property tax and insurance.
Stress-test the result
Raise the rate, add a small new debt or trim the down payment to see how sensitive your price ceiling is before you start touring homes.
Inputs explained
What the calculator is weighing
- Gross monthly income sets the foundation; every limit is expressed as a percentage of it.
- Monthly debts reduce how much of your income can go toward housing under the back-end ratio.
- Down payment adds directly to your purchase power, since it covers part of the price without a loan.
- Interest rate and term decide how large a loan a given monthly payment can carry.
- Taxes and insurance consume part of your housing allowance, so higher-cost areas reduce the price you can support.
Under the 28%/36% guideline, housing costs stay near 28% of gross monthly income and total debt payments near 36%. The calculator uses whichever limit is tighter for your profile.
Understanding results
Reading your maximum home price
Your result is the highest price where the estimated housing payment fits both ratios at the rate and term you entered. It is a conservative planning number, not the most a lender could approve and not necessarily what you should spend.
Debt-to-income limits vary by program. FHA loans, VA loans and some conventional files may allow higher ratios when compensating factors such as strong credit or cash reserves are present, while other scenarios are held tighter. Your final figure depends on credit, verified income, underwriting and program guidelines.
Remember that the estimate excludes HOA dues, PMI, closing costs and the cushion you'll want for repairs and emergencies. It is not a loan offer. Property taxes and insurance differ by location, so recheck the numbers with a real listing in the mortgage payment calculator.
Shop with a pre-approval, not a guess
Sellers respond to a letter from a lender, not a calculator screenshot. Start online with no hard credit pull, and Sterling Smith will confirm your true buying power and check whether state and local down payment assistance programs may apply.
Check My Buying PowerAnswers
Home affordability questions
What is the 28/36 rule?
It's a widely used underwriting guideline: total housing costs at about 28% of gross monthly income, and all monthly debt payments, including housing, at about 36%. Many programs allow flexibility above those levels depending on the full file.
Should I use gross or take-home pay?
Lenders measure debt-to-income against gross income, so the calculator does too. For your personal comfort, though, compare the estimated payment against your take-home pay as well.
Why does a small car loan change my maximum price so much?
Every dollar of monthly debt counts against your back-end ratio, which leaves less room for a housing payment. Paying off or avoiding new debt before applying can noticeably widen your budget.
Can I afford more if I'm self-employed?
Income for self-employed borrowers is usually based on documented earnings after business expenses. If tax returns understate your cash flow, our specialized mortgage programs, such as bank statement loans, may be worth a conversation.
Does my credit score affect how much house I can afford?
Indirectly, yes. Credit influences the rate you're offered and whether mortgage insurance applies, and both change the payment a given income can support. Our document checklist explains what to gather before pricing is finalized.
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