Home Affordability Calculator
Find your safe maximum home price before you start shopping
How Much House Can I Actually Afford?
The question every home buyer asks — and most get wrong. The number your lender approves you for is not the same as what you can comfortably afford. Lenders approve you for the maximum they'll lend. Your job is to find the amount that keeps your finances healthy, your savings growing, and your stress manageable.
This calculator uses the same formulas your mortgage lender will use when evaluating your application — giving you a realistic picture before you ever walk into a bank or speak with a real estate agent.
Demystifying the 28/36 Rule Used by Mortgage Lenders
The 28/36 rule is the foundational guideline in mortgage qualification. It consists of two separate ratios that lenders check before approving any home loan:
| Ratio | What It Measures | Maximum Allowed | Includes |
|---|---|---|---|
| Front-End Ratio | Housing costs vs income | 28% of gross monthly income | Principal, interest, taxes, insurance, HOA |
| Back-End Ratio (DTI) | All debt vs income | 36% of gross monthly income | Housing costs + all other debt payments |
In practice, lenders will use whichever limit produces the lower maximum payment. If your existing debt payments are high, the 36% back-end limit will be your binding constraint — meaning you qualify for less house than the 28% rule alone would suggest.
Factoring in Property Taxes, Homeowners Insurance, and HOA Fees
Many first-time buyers focus only on principal and interest when calculating affordability — a costly mistake. Your full monthly housing cost includes several additional components that lenders count toward the 28% limit:
- Property taxes: Vary dramatically by location. In New Jersey, effective rates average 2.2% of home value annually — one of the highest in the US. On a $400,000 home, that's $8,800/year or $733/month.
- Homeowner's insurance: Typically $1,200–$3,000/year depending on home value, location, and coverage level. Budget $100–$250/month.
- HOA fees: If applicable, these can range from $100 to $1,000+ per month and must be included in your front-end ratio.
- PMI: If your down payment is under 20%, add 0.5–1% of the loan amount annually in private mortgage insurance.
Why Calculating Your Home Budget Privately Protects Your Data
The moment you start researching home buying online, you enter a data ecosystem designed to monetize your interest. Mortgage comparison sites, real estate portals, and even many "free" calculators collect your information and sell it as leads to lenders, real estate agents, and financial services companies.
When you enter your income, debt levels, and home buying budget into these platforms, you're not just getting a calculation — you're signing up to be contacted by dozens of financial salespeople who purchased your information.
LedgerCalc is built on a different architecture. Every calculation runs entirely within your browser using client-side JavaScript. Your income, debt payments, down payment savings, and home buying budget are processed locally on your device. This information is never transmitted to our servers, never stored, and never sold or shared with any third party — including lenders, real estate agents, or advertisers. You can research your home buying power honestly and privately, without triggering a flood of sales calls.
Your Home Buying Budget Stays 100% Private
Your income, debt levels, and home buying capacity are entered and calculated entirely on your device. LedgerCalc never transmits this information, never stores it in a database, and never shares it with lenders, real estate companies, or advertisers. Research your home buying power freely — without triggering sales calls or data collection.