Home Affordability Calculator
Find out exactly how much house you can afford based on your income, debts, and local market rates — updated automatically for your country.
Reference table
| Down Payment | Recommended Home Price | Conservative | Aggressive |
|---|---|---|---|
| 1,000 | $167,000 | $149,000 | $197,000 |
| 2,000 | $168,000 | $150,000 | $197,000 |
| 2,500 | $168,000 | $150,000 | $198,000 |
| 5,000 | $170,000 | $152,000 | $200,000 |
| 7,500 | $172,000 | $154,000 | $202,000 |
| 10,000 | $174,000 | $156,000 | $203,000 |
| 12,500 | $176,000 | $158,000 | $205,000 |
| 15,000 | $178,000 | $160,000 | $207,000 |
| 20,000 | $181,000 | $164,000 | $211,000 |
| 25,000 | $185,000 | $167,000 | $215,000 |
| 30,000 | $189,000 | $171,000 | $219,000 |
| 40,000 | $199,000 | $185,000 | $226,000 |
| 50,000 | $212,000 | $193,000 | $243,000 |
| 75,000 | $230,000 | $212,000 | $262,000 |
| 100,000 | $249,000 | $230,000 | $280,000 |
3 Affordability Scenarios
- Conservative: 25–28% housing costs — maximum financial cushion
- Moderate: 28–33% housing costs — balanced approach (recommended)
- Aggressive: 33–43% housing costs — maximum buying power, less flexibility
Your Monthly Payment Breakdown
- Principal & Interest: loan amortization payment
- Property Tax: based on home value
- Home Insurance: based on home value
- PMI: only if down payment < 20% on conventional
- HOA: your monthly fee if applicable
Pro Tips to Maximize Affordability
- Pay down debts before buying — each $100/month less in debt adds ~$20k buying power
- A 20% down payment eliminates PMI and lowers your rate
- Check your credit score — going from 660 to 740 can save 0.5–1% on your rate
- Get pre-approved before shopping so sellers take you seriously
What Home Affordability Really Means
How the 28/36 Rule Sets Your Limit
Key Factors That Shape Your Buying Power
- Gross income sets both DTI limits — every extra $1,000 of monthly income adds roughly $280 of allowable housing payment under the 28% rule.
- Monthly debts hit hardest: a $400 car payment can cut your maximum home price by $50,000–$60,000 at current rates.
- A bigger down payment raises your price directly and, at 20% or more, removes PMI — freeing $100–$200 per month for the mortgage itself.
- Interest rate matters enormously: each 1% increase in rate cuts your buying power by roughly 10% for the same monthly payment.
- Property taxes and insurance count toward the 28% housing cap, so a high-tax area lowers your maximum price even at the same income.
- Your credit score drives your rate — dropping from 'very good' to 'fair' can cost over 1% in rate, worth tens of thousands in home price.
Smart Affordability Guidelines
- Follow the 28/36 rule: at most 28% of gross monthly income on housing and 36% on all debts combined.
- Don't buy at the top of your approval — lenders may approve up to 43–50% DTI, but budgets above 36% leave little room for surprises.
- Put 20% down when possible to skip PMI; if not, plan to request PMI removal once you reach 20% equity.
- Keep 3–6 months of expenses in savings after closing — your down payment should never be your entire cash reserve.
- Budget about 1% of the home's value per year for maintenance and repairs on top of the mortgage payment.
- Get quotes from at least 3 lenders — a 0.25% rate difference on a $300,000 loan is about $18,000 over 30 years.
Worked Examples: The 28/36 Rule in Action
Two US-style scenarios computed step by step
$96,000 income, $450 debts, $70,000 down — conventional, 6.8%, 30 yr
- Monthly income: $96,000 ÷ 12 = $8,000. Front-end cap: 28% × $8,000 = $2,240
- Back-end cap: 36% × $8,000 = $2,880 − $450 debts = $2,430 → the $2,240 front-end cap binds
- At a $340,000 price: loan $270,000 → P&I $1,760; taxes (1.1%) $312; insurance (0.5%) $142 = $2,214/mo
- Check: $2,214 ÷ $8,000 = 27.7% ✓; ($2,214 + $450) ÷ $8,000 = 33.3% ✓; 20.6% down → no PMI
Maximum comfortable price ≈ $340,000 with a $2,214/month total payment
$72,000 income, $900 debts, $25,000 down — conventional, 6.8%, 30 yr
- Monthly income: $6,000. Front-end cap: 28% = $1,680; back-end cap: 36% = $2,160
- Debts take $900 of the back-end cap: $2,160 − $900 = $1,260 → the back-end binds, not the 28%
- At a $170,000 price: loan $145,000 → P&I $945; taxes $156; insurance $71; PMI (13.9% down) $60 = $1,232/mo
- Check: ($1,232 + $900) ÷ $6,000 = 35.5% ✓ — with zero debts the same buyer could afford ≈ $225,000
Maximum price ≈ $170,000 — $900 in monthly debts cost this buyer about $55,000 of house
Frequently Asked Questions
How much house can I afford on a $70,000 salary?
With a $70,000 salary, no other debts, and a 3% down payment, you can typically afford a home in the $220,000–$260,000 range using an FHA loan at current rates. With a conventional loan and 20% down, the range shifts to $200,000–$240,000. Your actual limit depends on local interest rates, property taxes, and any existing debts. Use the calculator above with your specific numbers for an accurate estimate.
What is the 28/36 rule?
The 28/36 rule is the standard guideline lenders use for conventional loans. It states that your monthly housing costs (mortgage + taxes + insurance) should not exceed 28% of your gross monthly income, and your total monthly debts (housing + car + student loans + credit cards) should not exceed 36%. Staying within these limits gives you the best chance of loan approval and financial stability.
How does a higher down payment help?
A larger down payment helps in three ways: it reduces your loan amount (lowering monthly payments), it eliminates PMI if you reach 20% of the home value, and it typically earns you a lower interest rate. Every additional $10,000 in down payment reduces your monthly payment by about $65–$75 and can increase your maximum home price by $15,000–$20,000.
Should I use FHA or conventional loan?
FHA loans are better if you have a lower credit score (580+), smaller down payment (3.5%), or higher debt-to-income ratio. Conventional loans are better if you have a good credit score (700+), at least 5–20% down, and manageable debts. FHA loans require mortgage insurance premiums for the life of the loan, while PMI on conventional loans is removed once you reach 20% equity.
Why does my country's mortgage rate appear automatically?
Kalcufy uses geo-detection to identify your country and pre-fills the average mortgage rate, property tax rate, and insurance defaults for your market. A Mexican buyer sees Mexican bank rates (around 10.5%), a German buyer sees Euribor-based rates (around 3.7%), and a US buyer sees the 30-year fixed average. You can always override these with your actual quoted rate.
What expenses are NOT included in this calculation?
This calculator does not include closing costs (2–10% of home price depending on country), moving expenses, immediate repairs or renovations, utility setup costs, or emergency fund requirements. Financial advisors recommend keeping 3–6 months of expenses in savings even after your purchase, so make sure your down payment isn't your entire savings.