Home affordability calculator
Estimate how much house you can afford from your income and expenses.
Monthly payment breakdown
- Principal & interest$2,550.00
- Property tax$400.00
- Homeowners insurance$150.00
- Debt-to-income
- 36.0%
- Down payment %
- 12.9%
- Loan amount
- $403,438
How this affordability calculator works
Home affordability is not just list price. This calculator estimates a purchase price and monthly housing payment from your income, other monthly debts, down payment, and loan assumptions. It sizes housing costs so that housing plus other debts are about 36% of gross monthly income—a common debt-to-income (DTI) guideline—then lets you explore stretch and more aggressive price levels on the slider.
The monthly housing payment shown includes principal and interest, estimated property tax, homeowners insurance, mortgage insurance (PMI/MIP) when you enter it, and HOA dues. Other monthly debts count toward DTI but are not part of the payment breakdown chart.
Results are educational estimates only. Lenders also weigh credit, reserves, property type, and program rules. Closing costs, utilities, and maintenance are not modeled here—your true cash to close and monthly costs may be higher.
Frequently asked questions
How much house can I afford?
A common starting point is keeping housing costs plus other monthly debts near 36% of gross monthly income, then backing into a loan amount and purchase price from your rate, term, and down payment. This affordability calculator does that math and shows Affordable, Stretch, and Aggressive price bands.
What is included in the monthly payment?
Principal and interest, estimated property tax, homeowners insurance, mortgage insurance when you enter it, and HOA dues. Other monthly debts are used to calculate debt-to-income but are not part of the housing payment breakdown.
How is debt-to-income calculated?
DTI is housing costs plus your other monthly debts, divided by gross monthly income. This tool aims for about 36% for the Affordable band. Many borrowers need 36% or lower to qualify; FHA may allow around 43%, and VA or USDA around 41%. Exact limits depend on the lender and loan program.
Does a bigger down payment raise the home price I can afford?
Yes, usually. Putting more cash down increases the purchase price you can reach for the same loan payment your income supports—or leaves more monthly cushion if you keep the same price. A larger down payment can also reduce or eliminate mortgage insurance.
How much of my savings should go to the down payment?
There is no single right percent. Many buyers keep reserves for closing costs, moving, repairs, and a few months of housing payments rather than putting every dollar into the down payment. Try this calculator at a few down-payment levels and compare home price, monthly payment, and how much cash you would still have after closing.
What is not included in this affordability estimate?
Closing costs, discount points, utilities, and maintenance are not modeled here. Your true cash to close and monthly costs may be higher.