House Affordability Calculator
Find out how much house you can truly afford based on your take-home pay. See what fits your monthly budget, not just what a lender might approve.
How Lenders Calculate Differently
Mortgage lenders use your gross (pre-tax) income to determine how much you can borrow. This calculator uses your take-home pay to show what you can actually afford from your monthly budget.
Your Financial Information
Your after-tax monthly income
% of take-home pay for housing
Amount you'll pay upfront
Car, student loans, credit cards
For reference only - not used in calculations
How Much House Can You Afford?
Maximum Home Price
$222,891
Recommended: $189,457 (conservative)
Monthly Payment Breakdown
Your Monthly Budget
Loan Amount
$162,891
Down Payment
2,690.0%
No PMI
Total Interest
$222,337
Over 30 years
Total Cost
$445,228
Principal + Interest + Down
Understanding Your Budget Ratios
Housing Ratio (28.0%): Percentage of your take-home pay going to housing. Financial experts recommend keeping this below 28-30%.
Total Debt Ratio (38.0%): Housing plus all other debts. Aim to keep this below 40% for financial flexibility.
Important Notice
This calculator uses your after-tax income for estimates. Lenders typically use gross (pre-tax) income for mortgage qualification.
- •Consult a mortgage professional for pre-approval amounts
- •Actual affordability depends on credit score, debt-to-income ratio, and lender requirements
- •Property taxes and insurance rates vary by location
How to Use This Calculator
Our calculator uses your monthly take-home pay (after taxes) to determine what you can actually afford from your monthly budget. This is different from traditional calculators that use gross income.
Why Take-Home Pay?
Lenders use gross income to determine loan eligibility, but you pay your mortgage with your after-tax income. This calculator shows what you can realistically afford based on money you actually have each month.
Housing Budget Guidelines
Financial experts recommend spending 25-30% of your take-home pay on housing:
- 25% (Conservative): Maximum financial flexibility and security
- 28% (Recommended): Balanced approach for most budgets
- 30% (Moderate): May work if you have low other expenses
- 33%+ (Stretched): Could limit your ability to save or handle emergencies
What's Included in Housing Costs?
PITI + PMI + HOA
- Principal - Loan repayment
- Interest - Cost of borrowing
- Taxes - Property taxes
- Insurance - Homeowners insurance
- PMI - Private Mortgage Insurance (if down payment < 20%)
- HOA - Homeowners Association fees (if applicable)
Tips for First-Time Home Buyers
- Aim for a 20% down payment to avoid PMI
- Keep an emergency fund of 3-6 months of expenses
- Factor in closing costs (2-5% of home price)
- Consider all homeownership costs: maintenance, repairs, utilities
- Get pre-approved before house hunting to know what lenders will offer