Home Affordability Calculator
Estimate how much home you can afford based on your income, debts and down payment. The calculator caps your housing payment at a chosen debt-to-income limit, sets aside property taxes and insurance, and works backward to a maximum home price.
How to estimate what you can afford
- Enter your gross annual income and your other monthly debt payments.
- Enter your down payment, the interest rate and the loan term.
- Adjust the DTI limit, property tax rate and insurance, then read your max home price.
Examples
90k income, 500 debts, 40k down, 7% over 30 years
Income 90,000, debts 500, down 40,000, rate 7%, term 30, DTI 36%
Max home price about 312,578, loan about 272,578, payment 2,200
Frequently asked questions
How does this calculator decide what I can afford?
It caps your total monthly housing payment at a share of your gross income, set by the debt-to-income limit, after subtracting your other debts. That budget covers principal, interest, property taxes and insurance.
What DTI limit should I use?
A back-end DTI of 36 percent is a common benchmark, and 43 percent is a frequent ceiling for qualified mortgages. A lower limit, such as 28 percent, gives a more conservative budget.
How is the maximum loan amount found?
The calculator takes the part of your budget left for principal and interest and inverts the standard amortization formula, using the present-value-of-an-annuity factor for your rate and term, to find the largest loan that fits.
Why do property taxes and insurance matter here?
Taxes and insurance are part of your monthly housing payment, so they reduce what is left for principal and interest. Since taxes scale with the home price, they are solved together with the loan rather than ignored.
Is the result a loan pre-approval?
No. It is an estimate to set your budget. Lenders also weigh credit, employment, reserves and the specific loan program, so your approved amount may differ.
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