Find out exactly how much house you can afford based on your income, debts, and down payment.
Use the Home Affordability Calculator to get a clear picture of your buying power. Enter your income, monthly debts, and down payment to see your maximum affordable home price, estimated monthly payment, and how different scenarios — like a larger down payment or lower interest rate — change what you can afford.
- Income-Based Affordability — Calculate your maximum home price based on gross income and existing debts
- 28/36 Rule Analysis — See whether your target home fits within the industry-standard 28/36 debt-to-income guidelines
- DTI Calculation — Know your front-end and back-end debt-to-income ratios and what lenders will think
- Down Payment Scenarios — Compare how 5%, 10%, 15%, and 20% down payments affect your buying power and monthly costs
- Monthly Payment Breakdown — See exactly where your money goes: principal, interest, taxes, insurance, and PMI
- Mobile-Friendly — Works on any device, no download required
The 28/36 rule is a guideline lenders use: spend no more than 28% of gross monthly income on housing costs (mortgage, taxes, insurance) and no more than 36% on total debt payments (housing + car loans, student loans, credit cards). The calculator checks both ratios and tells you if your target home is within safe limits.
You can buy a home with as little as 3% down (conventional) or 0% down (VA/USDA loans). However, putting less than 20% down typically requires Private Mortgage Insurance (PMI), which adds $50-$200+/month. The calculator shows how different down payment amounts affect your monthly payment and total cost.
Your credit score directly impacts your mortgage interest rate. A score of 760+ gets the best rates, while a score of 620 might mean a rate 1-2% higher. On a $400,000 home, that difference can mean $200-$400 more per month and $70,000-$140,000 more in total interest over 30 years. Improving your score before buying can significantly increase your buying power.
Most financial experts say no. Just because a lender approves you for a certain amount doesn't mean you should spend it all. Leave room in your budget for savings, emergencies, home maintenance (budget 1-2% of home value per year), and life. Many homeowners are happiest spending 2-3x their annual income rather than the maximum 4-5x that lenders allow.
This calculator is part of the BullRun Forever Toolkit — 16 free financial calculators including:
- Auto Lease vs Buy Calculator
- Real Estate Calculator
- Roth IRA Calculator
- Debt Strategy Planner
- Freedom Number Calculator
This tool is for educational and informational purposes only. It does not constitute financial or mortgage advice. Affordability estimates are based on the inputs you provide and general lending guidelines — actual loan approval, rates, and terms depend on your credit profile, lender, and market conditions. Consult a qualified mortgage professional before making home-buying decisions.
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