Rocket Mortgage Home Affordability Calculator

Calculating affordability is crucial when considering buying a home. Rocket Mortgage Home Affordability Calculator simplifies this process by providing an estimate of the maximum home price you can afford based on various financial factors.

To calculate the affordable home price, the calculator uses the following formula:

  1. Determine the monthly income by dividing the annual income by 12.
  2. Calculate the monthly debt expenses by dividing the total annual debt expenses by 12.
  3. Subtract the monthly expenses from the monthly income to find the available income for a mortgage.
  4. Calculate the monthly mortgage payment using the formula for a fixed-rate mortgage.
  5. Multiply the monthly mortgage payment by the total number of payments to find the total payment over the loan term.
  6. Add the down payment to the total payment to get the affordable home price.

How to use:

  1. Enter your annual income in the “Annual Income” field.
  2. Input your monthly debt expenses in the “Monthly Debt Expenses” field.
  3. Specify your down payment amount.
  4. Enter the interest rate for the loan.
  5. Set the loan term in years.
  6. Click the “Calculate” button to see the estimated affordable home price.

Suppose your annual income is $80,000, monthly debt expenses are $1,000, down payment is $20,000, interest rate is 3.5%, and the loan term is 30 years.
After clicking “Calculate,” the result will show that you can afford a home up to $285,920.


  1. How accurate is the affordability estimate?
    The affordability estimate provided by the calculator is based on the inputs you provide and standard mortgage calculations. While it offers a close approximation, it’s essential to consult with a financial advisor or mortgage lender for precise figures.
  2. Can I use this calculator for other types of loans?
    This calculator is specifically designed for estimating affordability for home mortgages. For other types of loans, such as personal or auto loans, different calculators may be more appropriate.
  3. What if my down payment is less than 20%?
    While a down payment of 20% is often recommended to avoid private mortgage insurance (PMI), this calculator takes into account any down payment amount you input.

The Rocket Mortgage Home Affordability Calculator is a valuable tool for anyone considering homeownership. By understanding your financial capabilities, you can make informed decisions about purchasing a home within your means.

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