How Much House Can I Afford Calculator
How much house can I afford? Home affordability calculator from income, down payment, mortgage rate and the share of income you spend on housing.
H = D + q · I / 12m(r, n)
How to use this calculator
- Choose the quantity you want under “Solve for”.
- Type the known values and pick their units: any combination works.
- The result updates as you type. Open “Show the steps” to see the substitution.
Lenders often cap the mortgage payment at about 28 % of gross income (the 28/36 rule). Taxes, insurance and HOA fees are not included, so leave some margin.
Estimates for planning only; not financial advice. Your lender’s figures may differ.
Formula
H = D + q · I / 12m(r, n)
| Symbol | Quantity | Units |
|---|---|---|
| I | Gross annual income | $, €, £ |
| q | Share of income for the mortgage (28 % rule) | %, × |
| D | Down payment | $, €, £ |
| i | Mortgage rate | %, × |
| t | Term | years, months |
| H | Affordable home price | $, €, £ |
Constants used: m = monthly payment per 1 of loan
Worked example
Given: I = 90,000.00 $ · q = 28 % · D = 40,000.00 $ · i = 6.5 % · t = 30 years
H = D + q I / 12m
Result: H = 372,242.72 $
Affordable home price for different values of Gross annual income
| I · Gross annual income | H · Affordable home price |
|---|---|
| 45,000.00 $ | 206,121.36 $ |
| 67,500.00 $ | 289,182.04 $ |
| 81,000.00 $ | 339,018.45 $ |
| 90,000.00 $ | 372,242.72 $ |
| 99,000.00 $ | 405,466.99 $ |
| 112,500.00 $ | 455,303.40 $ |
| 135,000.00 $ | 538,364.08 $ |
| 180,000.00 $ | 704,485.44 $ |
Other values as in the worked example.
Frequently asked questions
$90,000 income, $40,000 down, 6.5 %, 30 years, 28 %?
About $372,000.
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