Home Affordability Calculator Free

The Home Affordability Calculator is a simple tool designed to give an estimate of the home price you can afford based on your annual income, monthly debts, and available down payment. However, it’s a basic tool and doesn’t account for factors like tax rates, homeowners’ insurance, or credit score, so consulting a financial advisor or mortgage professional for a comprehensive assessment is advised.

Our Home Affordability Calculator is a (hopefully) useful tool designed to give prospective home buyers an estimate of how much they might be able to afford when purchasing a home. It calculates the estimate by considering the user’s annual income, monthly debts, and available down payment. The logic behind the calculator is based on standard financial advice: namely, that a homeowner should spend no more than 30% of their income (after paying off any debts) on housing costs. It also assumes a standard 4% interest rate on a mortgage to calculate the potential loan amount.

We must take a second to note some limitations. While this calculator can be a helpful starting point, it’s important to note that it has several limitations. For instance, it doesn’t account for variations in local tax rates, homeowners’ insurance, potential HOA fees, or fluctuations in interest rates, all of which can significantly impact the total cost of home ownership. It also uses a simple estimate of housing cost as a percentage of income, which may not suit everyone’s financial circumstances. The calculator doesn’t take into account credit score, which can greatly affect the interest rate a borrower can secure, and therefore, the total amount of loan they can afford. It’s always recommended to seek advice from a financial advisor or a mortgage professional for a comprehensive understanding of how much you can afford when buying a home.

How to use our Home Affordability Calculator


Input Your Financial Details

Enter your annual income, monthly debts, and available down payment into the appropriate fields. Your annual income should be your total income before taxes, and your monthly debts should include any recurring payments such as student loans, credit card payments, car loans, etc. The down payment field should reflect the amount of money you have available to put down upfront on a home purchase.


Click "Calculate"

Click the "Calculate" button. The calculator will use the information provided to estimate the price of a home you might be able to afford. This is calculated based on the assumption that 30% of your monthly income (after subtracting debts) should go towards housing costs, and that you would get a mortgage with a 4% interest rate.


Review the Results

Review the output provided by the calculator. This is an estimated home price based on the information you provided. Remember, this is a simple tool and doesn't take into account other factors that could impact the price of the home you can afford, like local tax rates, homeowners' insurance, and more. It's always a good idea to consult with a financial advisor or mortgage professional to get a more comprehensive understanding.


Let's see what you can afford