Affordability Calculator: How Much House Can You Afford Based on Your Income
An affordability calculator flips the usual mortgage calculator around: instead of starting with a home price and calculating the payment, it starts with your income and existing debts, and works backward to a realistic price range you can actually target. The inputs that drive an affordability estimate A proper affordability calculation needs: Gross monthly income — before taxes, since that's the basis lenders use Existing monthly debt payments — car loans, credit cards (minimum payments), student loans, and any other recurring debt Estimated down payment — how much cash is available for the down payment and, separately, closing costs Target interest rate and loan term Estimated property taxes, insurance, and, if applicable, HOA dues for the area you're considering How the calculation actually works The calculator applies debt-to-income guidelines — commonly using a target back-end ratio around 36% (or a different figure you specify) — to figure out the max...