The home affordability calculator from realtor.com helps you estimate how much house you can afford. Quickly find the maximum home price within your price range.
Once you know how much you can borrow add to that your down payment to calculate the maximum house price you can afford. In this example, the maximum loan amount is calculated at $203,000. If you have a $20,000 down payment, you can purchase a $223,000 house.
Knowing how much you can afford is essential. A simple rule of thumb is you shouldn’t spend more than 1/3 of your after tax salary on rent. As an example, your annual salary is 50K that leaves you with $4,166/month. After taxes, you should have around $3,270. One third of 3270 is about $980, and that’s what your monthly rent should be on 50K a year.
Looked at the sidebar, didn’t see this anywhere. The vast majority of "how much house can you afford?" calculators out there on the internet ask how much down payment you will make, what your annual income is, and what mortgage rate you’ll have.