Affordable Home Calculator
Home Affordability Calculator works out Maximum home price and Maximum loan amount from Annual gross household income, Other monthly debt payments and Maximum housing (front-end) ratio. The default figures on this page give maximum home price of 330,642.94; change any entry and the result, the working and the sources update together.
Your figures
Updates as you typeHow this is worked out
8 steps
- Monthly gross income = 90000 / 12 = 7500
- Housing-ratio cap = 28% x 7500 = 2100
- Total-debt cap = 36% x 7500 - 500 = 2200
- Housing budget = min of the two = 2100 (the front-end ratio binds)
- Annuity factor k = i / (1 - (1+i)^-n) with i = 0.541667% and n = 360 gives 0.00632068
- Price = (budget - fixed costs) / ((k) x (1 - 0.2) + monthly tax rate) = 330642.94
- Loan = 330642.94 - 66128.59 = 264514.35
- Check: P&I 1671.91 + tax 303.09 + insurance 125 + mortgage insurance 0 + HOA 0 = 2100
Its 4 worked examples are re-run on every release, last on 15 September 2026. What changed
Sources and references
4 sources
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Save it, change one figure, then compare the two
The calculation stays free. Save this scenario, adjust one assumption, save that too, and put them side by side to see exactly what the change costs you. A free account keeps 5 scenarios and 2 comparisons; Personal makes both unlimited and adds exports and private links. Nothing is saved unless you press Save.
What the Home Affordability Calculator calculates
Works out the maximum home price and loan amount an income supports, by capping the monthly housing payment with the lender front-end and back-end debt-to-income ratios and then backing out price from principal, interest, taxes, insurance, mortgage insurance and HOA dues.
How to use this Home Affordability Calculator
Enter Annual gross household income, Other monthly debt payments, Maximum housing (front-end) ratio and Maximum total-debt (back-end) ratio. Maximum home price updates as you type, and “Use a worked example” loads checked figures you can adjust. Change one figure at a time to see what drives the result.
How the result is worked out
Open “How this is worked out” beside the result for the step-by-step calculation behind Maximum home price, Maximum loan amount and Down payment.
The method follows Fannie Mae Selling Guide B3-6-02: Debt-to-Income Ratios, HUD Handbook 4000.1, II.A.5 - FHA mortgage credit analysis (31% housing / 43% total benchmark ratios), 12 CFR 1026.43 (Regulation Z) - Ability to repay and qualified mortgages and Standard annuity-immediate payment formula, PMT = P i / (1 - (1+i)^-n).
90,000 income, 500 of other debt, 20% down at 6.5% over 30 years, no escrow example
With Annual gross household income: 90000, Other monthly debt payments: 500, Maximum housing (front-end) ratio: 28, Maximum total-debt (back-end) ratio: 36, the calculator returns Maximum monthly housing payment: 2100, Maximum loan amount: 332242.721, Maximum home price: 415303.401. This example is checked against an independent source in the test suite.
What you can compare
Change one input at a time to see how it affects Maximum home price, Maximum loan amount and Down payment. The inputs you can vary are Annual gross household income, Other monthly debt payments, Maximum housing (front-end) ratio, Maximum total-debt (back-end) ratio, Mortgage interest rate and Loan term.
Understanding Maximum home price, Maximum loan amount and Down payment
An estimate, not a pre-approval. Lenders also weigh credit score, reserves, employment history, loan programme limits and their own overlays, and the ratios below are guidelines rather than entitlements.
Results are general information, not financial, tax, legal, medical or engineering advice. Check any decision that matters with a qualified professional.
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Frequently asked questions
Can I afford a $400 k house on a $100 k salary?
Works out the maximum home price and loan amount an income supports, by capping the monthly housing payment with the lender front-end and back-end debt-to-income ratios and then backing out price from principal. On the figures this page opens with — annual gross household income 90,000, other monthly debt payments 500 and maximum housing (front-end) ratio 28% — the maximum home price is 330,642.94. Put your own figures in their place and the working updates beside the result.
How much do I have to make to qualify for a $400,000 mortgage?
On the figures this page opens with — annual gross household income 90,000, other monthly debt payments 500, maximum housing (front-end) ratio 28% and maximum total-debt (back-end) ratio 36% — the maximum home price is 330,642.94. No single number fits everyone: change any figure above and the answer updates as you type, with each step of the arithmetic beside it.
Can I afford a 300k house on a $70k salary?
It needs Annual gross household income, Other monthly debt payments, Maximum housing (front-end) ratio, Maximum total-debt (back-end) ratio, Mortgage interest rate and Loan term. Nothing else is required, and the figures stay in your browser.
How much do you need to make to afford a $500,000 mortgage?
The result gives Maximum home price, Maximum loan amount, Down payment, Maximum monthly housing payment, Principal and interest and Monthly property tax, each labelled with its unit so the figure can be read on its own.
What information do I need for the Home Affordability Calculator?
You need Annual gross household income, Other monthly debt payments, Maximum housing (front-end) ratio, Maximum total-debt (back-end) ratio, Mortgage interest rate, Loan term, Down payment given as and Down payment. The page opens with default figures that give maximum home price of 330,642.94, so you can see the scale before entering your own.
What does this Home Affordability Calculator show?
It shows Maximum home price, Maximum loan amount, Down payment, Maximum monthly housing payment, Principal and interest, Monthly property tax, Monthly home insurance and Monthly mortgage insurance, with the working and any warnings for your entries.