.calc-section { margin-bottom: 20px; }
.calc-label { display: block; font-weight: 600; margin-bottom: 8px; color: #2c3e50; font-size: 14px; }
.calc-input-group { position: relative; display: flex; align-items: center; }
.calc-input-prefix { position: absolute; left: 12px; color: #7f8c8d; font-size: 16px; }
.calc-input { width: 100%; padding: 12px 12px 12px 30px; border: 1px solid #ced4da; border-radius: 6px; font-size: 16px; transition: border-color 0.2s; }
.calc-input:focus { border-color: #3498db; outline: none; box-shadow: 0 0 0 3px rgba(52,152,219,0.1); }
.calc-row { display: grid; grid-template-columns: 1fr 1fr; gap: 20px; }
.calc-btn { width: 100%; background-color: #27ae60; color: white; border: none; padding: 15px; border-radius: 6px; font-size: 18px; font-weight: 600; cursor: pointer; transition: background-color 0.2s; margin-top: 10px; }
.calc-btn:hover { background-color: #219150; }
#affordability-result { margin-top: 25px; padding: 20px; border-radius: 8px; background-color: #f8f9fa; display: none; border-left: 5px solid #27ae60; }
.result-title { font-size: 18px; color: #2c3e50; margin-bottom: 10px; }
.result-value { font-size: 32px; font-weight: 800; color: #27ae60; margin-bottom: 15px; }
.result-detail { font-size: 14px; line-height: 1.6; color: #555; }
.calc-article { margin-top: 40px; border-top: 1px solid #eee; padding-top: 30px; }
.calc-article h2 { color: #2c3e50; font-size: 24px; margin-bottom: 15px; }
.calc-article p { line-height: 1.7; color: #444; margin-bottom: 15px; }
.calc-article ul { margin-bottom: 15px; padding-left: 20px; }
.calc-article li { margin-bottom: 8px; color: #444; }
@media (max-width: 600px) { .calc-row { grid-template-columns: 1fr; } }
function calculateAffordability() {
var annualIncome = parseFloat(document.getElementById('annualIncome').value);
var monthlyDebt = parseFloat(document.getElementById('monthlyDebt').value);
var downPayment = parseFloat(document.getElementById('downPayment').value);
var annualInterest = parseFloat(document.getElementById('interestRate').value);
var loanYears = parseFloat(document.getElementById('loanTerm').value);
var taxRate = parseFloat(document.getElementById('propertyTax').value);
if (isNaN(annualIncome) || isNaN(monthlyDebt) || isNaN(downPayment) || isNaN(annualInterest) || isNaN(loanYears) || isNaN(taxRate)) {
alert("Please fill in all fields with valid numbers.");
return;
}
var monthlyGrossIncome = annualIncome / 12;
// Using 36% DTI rule for a safe estimate
var maxMonthlyBudget = (monthlyGrossIncome * 0.36) – monthlyDebt;
if (maxMonthlyBudget <= 0) {
document.getElementById('max-home-price').innerText = "N/A";
document.getElementById('monthly-payment-display').innerText = "$0";
document.getElementById('affordability-result').style.display = "block";
return;
}
var monthlyRate = (annualInterest / 100) / 12;
var numberOfPayments = loanYears * 12;
// Simplified iterative approach to account for Tax and Insurance which are based on Home Price
// Total Monthly = P&I + Tax + Insurance
// P&I = Loan * (r(1+r)^n) / ((1+r)^n – 1)
// Monthly Tax = (HomePrice * TaxRate) / 12
// Monthly Insurance = (HomePrice * 0.0035) / 12 (Industry avg estimate)
var monthlyTaxFactor = (taxRate / 100) / 12;
var monthlyInsFactor = 0.0035 / 12;
var pAndIFactor = (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
// Calculation Logic:
// MonthlyBudget = (HomePrice – DownPayment) * pAndIFactor + HomePrice * monthlyTaxFactor + HomePrice * monthlyInsFactor
// MonthlyBudget + (DownPayment * pAndIFactor) = HomePrice * (pAndIFactor + monthlyTaxFactor + monthlyInsFactor)
var homePrice = (maxMonthlyBudget + (downPayment * pAndIFactor)) / (pAndIFactor + monthlyTaxFactor + monthlyInsFactor);
if (homePrice < downPayment) homePrice = downPayment;
var finalHomePrice = Math.round(homePrice);
var finalMonthlyPayment = Math.round(maxMonthlyBudget);
document.getElementById('max-home-price').innerText = "$" + finalHomePrice.toLocaleString();
document.getElementById('monthly-payment-display').innerText = "$" + finalMonthlyPayment.toLocaleString();
document.getElementById('affordability-result').style.display = "block";
// Scroll to result for mobile users
document.getElementById('affordability-result').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}
Home Affordability Calculator
$
$
$
%
%
You can afford a home priced up to:
$0
Estimated Monthly Payment:
Debt-to-Income Ratio used: 36% (Conservative Recommendation)
Debt-to-Income Ratio used: 36% (Conservative Recommendation)
This estimate includes Principal, Interest, Property Taxes (est.), and Homeowners Insurance (est.).
How Much House Can I Afford?
Determining your home buying budget is the most critical step in the real estate journey. Lenders typically look at your Debt-to-Income (DTI) ratio to decide how much they are willing to lend you. A common rule of thumb is that your total housing costs should not exceed 28% to 36% of your gross monthly income.
The 28/36 Rule Explained
Financial experts often recommend the 28/36 rule to maintain financial stability:
- 28%: Your maximum monthly mortgage payment (including taxes and insurance) should not exceed 28% of your gross monthly income.
- 36%: Your total debt payments (mortgage plus car loans, student loans, and credit cards) should not exceed 36% of your gross monthly income.
Key Factors That Impact Affordability
Several variables influence your purchasing power beyond just your salary:
- Interest Rates: Even a 1% difference in mortgage rates can change your buying power by tens of thousands of dollars.
- Down Payment: A larger down payment reduces your loan amount and can eliminate the need for Private Mortgage Insurance (PMI).
- Property Taxes: These vary significantly by state and county. Higher taxes mean a lower maximum loan amount for the same monthly budget.
- Credit Score: Higher scores qualify you for lower interest rates, directly increasing the home price you can afford.
Conservative vs. Aggressive Budgeting
While our calculator uses a conservative 36% DTI ratio, some loan programs (like FHA loans) may allow for a DTI as high as 43% or even 50% in specific cases. However, being "house poor"—where a massive chunk of your income goes to housing—can make it difficult to save for retirement or handle emergency repairs. Always consider your personal lifestyle and "hidden" costs like utility bills and maintenance when finalizing your budget.