Home Affordability Calculator

Estimate how much house you can afford from your income, monthly debts and down payment. See which debt-to-income limit sets your budget, what the monthly payment would include and how the price changes with the rate. Your inputs stay in your browser.

Your income, debts and loan

Income, debts and savings

Gross income for everyone on the loan.

Car, student and personal loans, card minimums, support. Not rent or utilities.

Cash for the down payment, after setting aside closing costs.

The loan

The rate on a quote (not the APR).

Taxes, insurance and fees

A percent of the home price. Rates vary widely by place.

Applied only with less than 20% down. A percent of the loan amount.

Your limits

The full housing payment as a share of gross income. 28% is a common guideline.

Housing plus other debts. 36% is a common guideline; lenders may allow more.

About $320,463 · $2,333.33/month for housing. See full results

Example: $100,000 a year of income, $500.00 a month of other debt payments and $40,000 down at 6.5% for 30 years, with 1.1% property tax, $1,800 a year of insurance and 0.5% PMI (illustrative figures, not local rates). Enter your numbers to update.

Your affordability estimate

Home price you could afford
$320,463
With $40,000 down (12.5%)
Monthly housing payment
$2,333.33
Principal, interest, taxes, insurance, PMI and HOA
Loan amount
$280,463
87.5% of the price (loan-to-value)
Debt-to-income
28% / 34%
Housing only / housing plus other debts

Your housing limit sets the budget: 28% of $8,333.33 gross monthly income is $2,333.33 a month for housing. Your total debt limit would allow $2,500.00, so your other debts do not reduce the price here.

With less than 20% down, the payment includes $116.86 a month of PMI at your rate.

The monthly payment at that price

PartPer month
Principal and interest $1,772.72
Property tax $293.76
Homeowners insurance $150.00
PMI $116.86
Total $2,333.33

How the rate changes the price

The same budget at other rates

RateHome pricePrincipal and interest
5.5% $346,176$1,738.43
6.5% (yours) $320,463$1,772.72
7.5% $297,843$1,802.88

Same income, debts, down payment and limits; only the rate changes. Closing costs are not included: keep cash for them on top of the down payment.

How debt-to-income limits set the budget

Debt-to-income (DTI) is your monthly debt payments divided by your gross monthly income; lenders use it to judge whether you can manage the payments (CFPB: what is a debt-to-income ratio?). This calculator applies two limits you choose:

  • Housing limit (front-end): the full housing payment (principal, interest, property tax, insurance, PMI and HOA dues) as a share of income. In the example, 28% of $8,333.33 a month is $2,333.33.
  • Total debt limit (back-end): the housing payment plus your other debt payments. 36% of income, minus $500.00 of other debts, leaves $2,500.00.

The smaller of the two is your housing budget, and the calculator finds the highest price whose full payment fits it. The common 28% and 36% figures are rules of thumb, not law: lenders set their own limits and may approve higher ratios, and a limit a lender allows is not the same as a payment that is comfortable for you.

When other debts cost you house

With $500.00 of other debt payments, the example is limited by the housing limit and could afford about $320,463. At $1,200.00 a month, the total debt limit takes over and the price falls to about $250,783; paying those debts off would restore about $69,680 of buying power. Our loan payoff calculator shows how extra payments shorten a loan.

What moves the number

  • Rate: the results table shows the example price at one point lower and higher: from $346,176 to $297,843.
  • Down payment: $80,000 down instead of $40,000 raises the price to about $371,543, partly because 20% down removes PMI.
  • Limits: at 36% housing and 43% total debt, the example price is about $407,563, with a $3,000.00 monthly payment instead of $2,333.33.

How the price is calculated

  1. Housing budget = the smaller of (income ÷ 12 × housing limit) and (income ÷ 12 × total debt limit − other debt payments).
  2. For a candidate price: loan = price − down payment; principal and interest use the standard payment formula, the same as our mortgage calculator; property tax = price × tax rate ÷ 12; insurance = yearly amount ÷ 12; PMI = loan × PMI rate ÷ 12, only when the loan is more than 80% of the price.
  3. The calculator searches for the highest price whose total monthly payment is within the budget, to within a fraction of a cent.

What this calculator does not include

  • Closing costs and cash reserves. Keep them on top of the down payment; your Loan Estimate lists closing costs.
  • FHA, VA and USDA loans, whose mortgage insurance, fees and limits follow different rules.
  • Credit scores, loan limits, underwriting rules and changes in taxes or insurance. Results are estimates, not a pre-approval, loan offer or financial advice.

Methodology and testing

Automated tests compare the calculator with an independent implementation: for 200 varied cases the solved price's payment fits the budget and one dollar more does not, and worked examples match separately computed reference prices. How we build and test calculators.

Sources

  • What is a debt-to-income ratio?, Consumer Financial Protection Bureau. Debt-to-income is all monthly debt payments divided by gross monthly income; lenders use it to measure the ability to manage payments.
  • What is private mortgage insurance?, Consumer Financial Protection Bureau. You may be required to pay private mortgage insurance on a conventional loan with less than 20% down; it protects the lender, not you, and is not required with 20% down.
  • Loan Estimate explainer, Consumer Financial Protection Bureau. The Loan Estimate lists a mortgage’s expected closing costs.
  • Mortgage Calculator

    Full monthly payment with taxes, insurance, PMI and HOA, the dates PMI can be dropped or ends, and lifetime cost.

  • Debt-to-Income Ratio Calculator

    Housing and total debt-to-income ratios, each payment's share of income, and the room or cut needed to reach a target.

  • Rent vs. Buy Calculator

    Net worth from renting vs. buying year by year, the break-even year, and the full costs of owning, with explicit assumptions.

  • Loan Payoff Calculator

    Payoff date and interest saved with monthly, yearly or lump-sum extras, and the extra needed to be debt-free by a set time.

  • Mortgage Points Calculator

    Cost of discount points, monthly savings, true break-even month, and net savings if you sell or refinance after N years.