Home Affordability Calculator
Estimate how much home you may be able to afford based on income, debts, down payment, and mortgage assumptions.
How this calculator works
How to use this calculator
Enter your gross monthly income, existing monthly debt payments, down payment, mortgage rate, loan term, and estimated monthly housing costs. The calculator estimates a home price that fits within common housing and total debt guidelines.
Formula used
The calculator uses a housing budget based on the lower of 28% of gross monthly income or 36% of gross monthly income minus existing monthly debt payments. It then estimates the home price by solving for a monthly cost that includes principal, interest, estimated property tax, insurance, and HOA.
Example calculation
With $6,000 gross monthly income, $500 monthly debt, $40,000 down payment, 6.5% interest, a 30-year term, 1.2% annual property tax, $120 monthly insurance, and $100 HOA, the estimated affordable home price is about $242,000.
What the result means
This is a planning estimate, not a loan approval. Lenders may use different debt-to-income limits, underwriting rules, credit standards, taxes, insurance estimates, and loan programs.
Frequently asked questions
Does this guarantee I can buy this home price?
No. It is an estimate only. Actual approval depends on lender rules, credit, income verification, assets, loan type, and local costs.
Why use 28% and 36%?
These are common affordability guidelines for housing costs and total debt, but they are not universal rules.
Does this include PMI?
No. If your down payment is below 20%, you may need to include mortgage insurance separately.