House Affordability Calculator

Based on Income

Based on Fixed Monthly Budget

Calculate how much house you can afford based on your income and debt

Calculate Your Affordability

Annual Household Income

Salary + other incomes (before tax)

Mortgage Loan Term

years

Interest Rate %

Monthly Debt Payments

long-term debts, car, student loan, etc

Down Payment %

Property Tax %

HOA or Co-op Fee %

Insurance %

Debt-to-Income (DTI) Ratio

Results

You can afford a house up to $556,340

You can borrow: $445,072

Total price of the house: $556,340

Down payment: $111,268

Estimated closing cost (3%): $16,690

Front-end DTI ratio: 37%

Back-end DTI ratio: 37%

Total one-time payment at closing: $127,958

Monthly Costs

Monthly mortgage payment: $2,800

Annual property tax: $8,345

Annual HOA or co-op fee: $0

Annual insurance cost: $2,782

Estimated annual maintenance (1.5%): $8,345

Total monthly cost on the house: $4,423

Loan Amount (40%)

Down Payment (10%)

Interest (50%)

Calculate Based on Fixed Monthly Budget

Budget for House

Amount you can allocate monthly for housing costs

Mortgage Loan Term

years

Interest Rate %

Down Payment %

Include the tax and fees below into the budget

Annual Costs (Percentage of Home Value)

Property Tax % per year

HOA or Co-op Fee % per year

Insurance % per year

Maintenance Cost % per year

Results

You can afford a house up to $440,276

You can borrow: $352,221

Total price of the house: $440,276

Down payment: $88,055

Estimated closing cost (3%): $13,208

Total one-time payment at closing: $101,263

Monthly Costs

Monthly mortgage payment: $2,216

Annual property tax: $6,604

Annual HOA or co-op fee: $0

Annual insurance cost: $2,201

Annual maintenance cost: $6,604

Total monthly cost on the house: $3,500

Loan Amount (80%)

Down Payment (20%)

House Affordability Calculator – Find Out How Much House You Can Afford

Buying a home is one of the biggest financial decisions most people will make. To avoid financial stress, it’s important to know exactly how much house you can afford before starting your home search. Our House Affordability Calculator makes this process simple. With two powerful modes—Income-Based Affordability and Fixed Monthly Budget—you can calculate a realistic price range that fits your financial situation.

What is a House Affordability Calculator?
Tab 1: House Affordability Calculator (Income-Based)
Tab 2: House Affordability Based on Fixed Monthly Budget
Why House Affordability Matters
Example Scenarios
Other Helpful Calculators
About Our Partner: PDF Tools Guru
Conclusion

What is a House Affordability Calculator?

A House Affordability Calculator is a tool that helps you estimate how much house you can buy without stretching your finances too thin. It considers your income, existing debts, down payment, loan terms, and interest rates to determine a safe home purchase range. By using this calculator,
you’ll know the maximum home price you can realistically afford before talking to a lender.

Tab 1: House Affordability Calculator (Income-Based)

The first tab is an income-based affordability calculator. Here’s how it works:

Enter your annual household income.
Include your debts (like car payments, student loans, or credit cards).
Add your expected down payment and loan details (term and interest rate).
The calculator estimates the maximum home price you can afford while keeping your debt-to-income (DTI) ratio within safe limits.

This method follows traditional lender guidelines, which typically recommend keeping housing costs below 28-30% of gross monthly income and total debts under 36-40%.

Tab 2: House Affordability Based on Fixed Monthly Budget

The second tab allows you to approach home affordability differently. Instead of basing calculations on your income, it focuses on your monthly budget. Here’s how:

You decide how much you’re comfortable spending each month on a mortgage.
Enter your chosen monthly budget, interest rate, and loan term.
The calculator estimates the home price you can afford based on that fixed monthly amount.

This approach is useful if you prefer to stick to a specific budget rather than calculate based only on income. For example, if you know you want to keep housing costs under $1,500 per month, this tool will show you what home price range matches your budget.

Why House Affordability Matters

Overestimating what you can afford can lead to financial stress, while underestimating could limit your options unnecessarily. By using both affordability methods, you can:

Set realistic expectations before shopping for a home.
Compare affordability under different loan terms and rates.
Plan your finances more effectively and avoid overextending.
Shop confidently within your budget.

Example Scenarios

Scenario 1 – Income Based: A family earning $80,000 annually with $500 in monthly debts and a $20,000 down payment could afford a home around $300,000, depending on interest rates and loan term.

Scenario 2 – Budget Based: If the same family wants to keep payments under $1,600 per month, the calculator might suggest a maximum home price closer to $270,000.

This shows how both tabs give useful perspectives to balance affordability and comfort.

Other Helpful Calculators

At Money Matrix Guide, we offer many tools to guide your financial journey:

About Our Partner: PDF Tools Guru

We’ve partnered with PDF Tools Guru, a free online platform that makes working with digital files easy. It offers:

PDF to JPG, PDF to Word, and other PDF converters.
File management tools like Merge PDF and Split PDF.
Everyday utilities like unit converters and calculators.
Smart features including a Sleep Calculator.

Together, Money Matrix Guide and PDF Tools Guru bring you the best free calculators and productivity tools for smart decision-making.

Conclusion

Before buying a home, it’s crucial to know what you can realistically afford. Our House Affordability Calculator gives you two clear methods: one based on your income and another based on your monthly budget. Use both approaches to get a full picture of your home-buying power and shop with confidence.

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