Home Affordability Calculator

Knowing your true home affordability prevents the most expensive financial mistake Americans make — buying more house than they can comfortably afford. This calculator applies the 28/36 DTI qualifying rule to your specific income, debts, and down payment to determine a realistic purchase price range.

Our free Home Affordability Calculator helps you estimate costs based on 8 key financial variables. The calculator provides 5 detailed outputs based on current rates and financial benchmarks.

Enter your details to get estimates based on current financial data as of 2026.

What you'll learn:

• Accurate home affordability calculator estimates based on your specific inputs
• Low, average, and high cost ranges for budgeting
• How local factors impact pricing
• Strategies for maximizing your financial outcome

Understanding the cost breakdown helps you budget effectively for your home affordability calculator project. Here are the typical cost components:

Our home affordability calculator uses a multi-variable formula that accounts for the following inputs:

1. Home Price ($) — Range: 50,000 to 10,000,000
2. Down Payment ($) — Recommended: 20% to avoid PMI
3. Interest Rate (%) — 2026 avg 30yr fixed: 6.8%
4. Loan Term — Choose from: 15 years, 20 years, 30 years
5. Annual Property Tax ($) — Range: 0 to 100,000
6. Annual Home Insurance ($) — Range: 0 to 20,000
7. Property Type — Choose from: Single Family, Condo/Townhouse, Multi-Family
8. Scenario Complexity — Choose from: Basic / Standard, Typical, Advanced / Complex

Based on your inputs, the calculator provides:

• Loan Amount — Dollar amount based on current market rates
• Principal & Interest — Dollar amount based on current market rates
• Total Monthly Payment (PITI) — Dollar amount based on current market rates
• Total of All Payments — Dollar amount based on current market rates
• Total Interest — Dollar amount based on current market rates

All calculations incorporate location-specific cost adjustments when a ZIP code is provided, using data from industry databases updated for 2026.

Uses the 28/36 qualifying rule: front-end ratio limits housing costs (principal, interest, taxes, insurance) to 28% of gross monthly income; back-end ratio limits total debt service to 36% of gross income. The calculator derives the maximum home price that keeps both ratios within limits, then adjusts for down payment percentage and current mortgage rates.

Data Sources:

• Freddie Mac Primary Mortgage Market Survey for current 30-year and 15-year fixed mortgage rates
• ATTOM Data Solutions property tax rate data by county
• National Association of Insurance Commissioners for average homeowner insurance premiums by state

Key Assumptions:

• Uses 30-year fixed rate mortgage as default — adjustable-rate mortgages may qualify for a higher initial amount but carry rate risk
• Property tax estimated at 1.1% of home value (national median) — actual rates range from 0.27% (Hawaii) to 2.49% (New Jersey)
• PMI required for down payments below 20%, estimated at 0.5-1.5% of the loan amount annually based on credit score tier

Several factors influence your home affordability calculator estimate:

Home Price ($)

A key variable in determining your home affordability calculator estimate.

Down Payment ($)

Recommended: 20% to avoid PMI

Interest Rate (%)

2026 avg 30yr fixed: 6.8%

Loan Term

Ranges from "15 years" to "30 years." Choosing 30 years can cost 2.0x more than 15 years.

Annual Property Tax ($)

A key variable in determining your home affordability calculator estimate.

Annual Home Insurance ($)

A key variable in determining your home affordability calculator estimate.

Property Type

Ranges from "Condo/Townhouse" to "Multi-Family." Choosing Multi-Family can cost 1.2x more than Condo/Townhouse.

Scenario Complexity

Ranges from "Basic / Standard" to "Advanced / Complex." Choosing Advanced / Complex can cost 1.5x more than Basic / Standard.

Market Conditions

Interest rates, inflation, and economic indicators fluctuate over time and directly affect your results. Federal Reserve policy changes can shift rates within weeks.

Time Horizon

Longer time horizons amplify the effect of compound interest and rate changes. Even small rate differences compound into significant dollar amounts over years.

After you run the calculator, your results include interactive sections that help you make informed decisions:

Financial Breakdown

Your results separate principal from interest (or contributions from earnings) so you can see exactly how your money is working. Understanding this split helps you evaluate whether refinancing, extra payments, or alternative strategies could save you money over time.

Visual Chart

Charts make it easy to grasp the relationship between what you pay and what you owe (or what you save and what you earn). A quick look at the visual split helps you decide whether your current approach is on track or whether adjustments to your payment or contribution strategy could improve your outcome.

Payment or Growth Schedule

The schedule shows how your balance changes period by period — whether that is a loan being paid down or savings growing over time. Each row shows the split between principal and interest (or contributions and earnings), so you can see exactly when you cross key milestones. This long-range view helps you plan major financial decisions with confidence rather than guesswork.

Save and Share Your Results

Download your complete results as a CSV spreadsheet or PDF report. The PDF includes all your inputs, key results, and schedule data — ready to share with lenders, financial advisors, or anyone else who needs to review the numbers. No account or signup required.

Here are proven strategies to reduce your costs:

1. Compare Rates from Multiple Lenders: Shop rates from at least 3 lenders. Even a 0.25% difference in interest rate can save thousands over time.
2. Automate Your Savings: Set up automatic transfers to savings or investment accounts. Consistent contributions compound significantly over time.
3. Maximize Tax-Advantaged Accounts: Contribute to 401(k) up to employer match, then fund IRA/Roth IRA. Tax-advantaged growth accelerates your returns.
4. Reduce High-Interest Debt First: Pay off credit cards and high-APR loans before investing. Eliminating 18-25% APR debt is a guaranteed return.
5. Review Fees and Expense Ratios: High fund fees erode returns. Index funds with 0.03-0.10% expense ratios outperform most actively managed funds over time.
6. Use Balance Transfer Offers Strategically: 0% APR balance transfer offers can save hundreds in interest — but pay off before the promotional period ends.