How to use it
- Enter your annual income in USD.
- Add your down‑payment amount and any other monthly debt.
- Set the loan interest rate and term in years.
- Click calculate to see your affordable home price.
What it does – The calculator takes your annual salary, down‑payment, loan rate, term and any other monthly obligations, then applies the 28 % front‑end debt‑to‑income rule to find the maximum monthly mortgage payment you can safely carry. Why it matters – Knowing the affordable home price helps you focus your search, avoid over‑extending, and negotiate with confidence. How to read the result – The output is the total purchase price you could afford, including the loan amount plus your down‑payment. Compare it to listings, factor in taxes and insurance, and decide if the home fits your budget. The tool assumes a standard amortizing loan, uses the exact annual rate you enter and converts the term to months. It subtracts other monthly debt before the 28 % test, so the payment reflects your cash flow. Remember to add property taxes, insurance and HOA fees, which are not in the mortgage payment.
Pro tips
- Round down the mortgage payment you can afford to stay on the safe side.
- Use a down‑payment amount that’s a round number for easier budgeting.
- Enter other monthly debt before the calculator applies the 28 % rule.
- Check the result against local property tax and insurance estimates.
Real-life examples
- First‑time buyer figuring out a realistic price range before house hunting.
- Refinance candidate estimating how much equity they could pull out safely.
- Real‑estate investor evaluating a rental purchase against cash‑flow limits.
Case study
Maria earns $95,000 a year, has $20,000 saved for a down‑payment and $400 in monthly car payments. Using a 4.5% rate and 30‑year term, the calculator showed she can afford a $380,000 home, helping her focus on listings within her true budget.