Home Affordability Calculator
Find out how much home you can afford based on your income, debts, and expenses.
Use it before you tour homes, when you want a price that fits the income and debts you enter.
How much house can you afford?
Compare scenarios
What if your income, debts, or down payment change?
How we calculated this
The monthly housing budget is the lower of two common planning ratios: a share of gross income for housing, and a share of gross income for all debts. The calculator searches for the highest home price whose principal, interest, taxes, insurance, PMI, and HOA fit in that budget.
What does this mean?
With about $2,800.00 available for housing each month, an estimated purchase price is $399,038. A lender’s approval can be higher or lower.
Your assumptions
Edit assumptions- Annual income
- $120,000
- Monthly debt
- $250.00
- Housing ratio
- 28%
- Total-debt ratio
- 36%
- Interest rate
- 6.50%
- Loan term
- 30 years
- Property tax
- 1.10%
This calculator provides an estimate for informational purposes. Actual mortgage payments, taxes, insurance, PMI, fees, and lender terms may vary.
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How the estimate is calculated
The housing budget is the lower of two ratios: a share of gross income for housing, and a share of gross income left after the debts you already pay.
The calculator finds the highest price whose principal, interest, taxes, insurance, PMI, and HOA fit in that budget.
How the price is found
Monthly income times the housing ratio is compared with monthly income times the total-debt ratio, minus current debts. The lower number is the budget. Home price is searched until the full housing payment matches that budget.
Example
- Divide annual income by 12.
- Apply the housing and total-debt ratios and keep the tighter budget.
- Search for a price where the full monthly housing cost fits.
With the numbers filled in on this page, the estimate is $399,038.
What changes the result
Income and debts
Debts you already pay reduce what is left for a mortgage under the total-debt ratio.
Down payment
Cash you put down lowers the amount borrowed and can remove PMI.
The ratios
28% and 36% are planning defaults, not a promise of approval. You can edit both.
Questions
Is this a pre-approval?
No. It is a budget estimate. A lender looks at credit, reserves, the property, and the loan program.
What debts should I include?
Include recurring debts such as car, student, and card payments. Do not include the mortgage you have not taken yet.
Why did the price stop rising?
The result names whether the housing ratio or the total-debt ratio set the limit.