Home Affordability Calculator
Find out how much house you can comfortably afford — and how much monthly budget remains for furniture, renovations and beautiful interiors.
Your Financial Details
How Much House You Can Afford
This is an estimate using common lending guidelines. Actual approval depends on credit score, employment history, lender overlays and local market conditions. Always consult a mortgage professional.
How This Home Affordability Calculator Works
Enter your gross annual income, existing monthly debts, planned down payment, expected interest rate and loan term. The calculator applies the front-end and back-end debt-to-income (DTI) limits you choose (defaults to the classic 28/36 rule) and factors in estimated property taxes and insurance to show the maximum home price you can reasonably afford.
Why Affordability Matters for Home Décor Lovers
Buying the most expensive house a lender will approve often leaves little room for furniture, lighting, renovations or personal style. This calculator shows both the maximum purchase price and the monthly cash you will still have available for creating a beautiful home.
The 28/36 Rule Explained
- Front-end ratio (28%) — Housing costs (principal, interest, taxes, insurance) should not exceed 28% of gross monthly income.
- Back-end ratio (36%) — All monthly debt payments combined (housing + car + student loans + credit cards, etc.) should stay under 36% of gross monthly income.
You can adjust both percentages in the calculator if you prefer a more conservative or flexible approach.
Tips for Buying a Home You Can Truly Enjoy
- Aim for a payment that leaves comfortable room for décor and unexpected costs
- Increase your down payment to lower the monthly obligation and avoid PMI
- Shop multiple interest rates — even 0.25% makes a big difference
- Get pre-approved so you know your real numbers before shopping
Frequently Asked Questions
Use this calculator with your actual income, debts and down payment. As a rough starting point, many people look at homes priced 3–5 times their annual household income, but the DTI method used here is more accurate.
Most conventional lenders prefer a back-end DTI of 36% or lower, though some programs allow up to 43–50% with compensating factors. A lower ratio gives you more financial flexibility for home improvements and décor.
Yes. You can enter typical percentage rates for your area. These costs are included in the PITI payment and affect the maximum home price.
Many new homeowners underestimate this cost. The “Monthly Budget Left” figure in the results helps you see what remains after housing so you can plan renovations and interior projects realistically.