How Much House Can I Afford?

Affordability is not determined by income alone. AffordSimple converts annual gross income to a monthly amount, then models three housing targets: Comfortable at 25%, Balanced at 32%, and Stretch at 40%. Monthly debt payments and the lifestyle or emergency buffer are subtracted from each target.

The calculator then searches for a home price whose total estimated monthly cost fits that target. That total includes principal and interest, property taxes, homeowners insurance, PMI when the entered down payment is below 20%, HOA fees, utilities, and maintenance. The interest rate, loan term, and down payment determine the loan-payment portion of the estimate.

AffordSimple uses the numbers you enter and the assumptions shown in the calculator to estimate a range, not one universally correct home price. A lender may calculate approval differently, and your own comfort level may be lower or higher depending on savings, childcare, transportation, healthcare, and other spending not entered here.

The affordability calculator starts with your household finances and estimates a reasonable home-price range. A mortgage calculator starts with a home price and loan assumptions and estimates what that home may cost each month. Already have a price in mind? Use the Mortgage Calculator.

Principal

The portion of a mortgage payment that reduces the loan balance.

Interest

The cost charged by a lender for borrowing the loan principal.

Property taxes

Taxes assessed by local governments. The calculator estimates them from the home price and annual tax rate you enter.

Homeowners insurance

Coverage for certain risks to the home and property. The annual amount you enter is converted to a monthly cost.

HOA fees

An optional recurring cost for properties governed by a homeowners association. It is included only when you enter an amount.

PMI

A mortgage-insurance estimate the calculator includes when the entered down payment is below 20% of the home price.

A larger down payment means borrowing less, which generally reduces principal and interest. A smaller down payment keeps more cash available but creates a larger loan. There is no universally correct amount because cash reserves and other priorities also matter.

If the interest-rate assumption increases while the home price, down payment, and term stay the same, the principal-and-interest payment increases. Adjust the rate in the calculator to compare scenarios; AffordSimple does not present its default as a current market quote.

Two households with the same income can receive different estimates because the calculator subtracts existing monthly debt from the housing target. Auto loans, student loans, credit-card payments, and other recurring debt obligations can leave less monthly room for housing. The lifestyle buffer creates additional room for expenses the calculator does not itemize.