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Mortgage Affordability Calculator

Estimate an affordable home price from income, monthly debts, down payment, mortgage rate, taxes, insurance, PMI, and HOA costs.

Budget details

Mortgage assumptions

Estimated buying power

$0

Estimated monthly payment
$0/mo
Estimated loan
$0
Estimated cash needed
$0

Interpret your affordability estimate

The estimated buying power is the highest home price whose monthly housing cost fits inside the selected debt-to-income profile after subtracting monthly debts.

Inputs that matter most

  • Income: higher gross income raises the debt-to-income budget.
  • Monthly debts: car loans, student loans, credit card minimums, and other debts that continue after buying reduce room for housing.
  • Down payment: increases buying power and may reduce or remove PMI.
  • Taxes, insurance, HOA, and PMI: these costs lower the loan payment the same budget can support.
  • Closing costs: do not change the loan payment estimate, but they increase the cash needed to complete the purchase.

Common mistakes

  • Using take-home pay instead of gross income when comparing to lender debt-to-income ratios.
  • Forgetting monthly debt payments that continue after buying.
  • Ignoring property taxes, insurance, PMI, or HOA dues.
  • Assuming the down payment is the only cash needed at closing.
  • Treating the result as a loan approval instead of a planning estimate.

When this estimate can be misleading

The estimate can be misleading if your lender uses different DTI limits, your credit profile changes the available rate, local taxes and insurance are much higher or lower than entered, or you need larger cash reserves after closing.

Scenarios to try

  • Try the classic conventional 28/36 guideline.
  • Switch to FHA-style 31/43 or VA-style 41% to compare less conservative DTI profiles.
  • Increase the rate by 0.5% to stress-test the budget.
  • Compare 10% and 20% down payments.
  • Add HOA dues before comparing condos with detached homes.
  • Raise closing costs to see how much extra cash the purchase may require.

Next-step utilities

Mortgage Calculator Rent vs Buy Calculator Loan Calculator

How to use this mortgage affordability calculator

Enter your income, monthly debts, available down payment, and mortgage assumptions to estimate a home price range that fits the selected debt-to-income profile.

  1. Enter gross annual household income and monthly debts that will continue after buying, such as car loans, student loans, and credit card minimums.
  2. Add the down payment cash you plan to use for the purchase.
  3. Choose a debt-to-income profile. Common examples include conventional 28/36, FHA-style 31/43, VA-style 41%, or custom total-DTI limits from 20% to 50%.
  4. Enter mortgage rate, term, property tax rate, insurance rate, PMI, HOA, and closing cost assumptions.
  5. Review the estimated home price, loan amount, monthly payment, and cash needed.

Mortgage Affordability Calculator features

  • Estimate affordable home price from income, debts, down payment, and mortgage assumptions.
  • Choose conventional 28/36, FHA-style, VA-style, or custom DTI profiles.
  • Include monthly debts that continue after buying.
  • Model mortgage rate, term, property tax, homeowners insurance, PMI, and HOA dues.
  • Include closing cost assumptions in cash-needed estimates.
  • Review estimated buying power, loan amount, total monthly payment, and cash needed.
  • See housing ratio and total debt-to-income budget effects.
  • Use affordability guidance before comparing specific homes.

Affordability formula and assumptions

The calculator converts income and the selected debt-to-income profile into a monthly housing budget, then searches for the highest home price whose estimated monthly cost fits that budget.

Monthly housing budget
B = min(I / 12 * h, max(0, I / 12 * d - E))

I is gross annual income, h is the selected housing ratio when the profile has one, d is the selected total debt-to-income limit, and E is monthly debts. For total-DTI-only profiles, the calculator uses only the total debt-to-income budget.

Monthly cost test
C = M + H * t / 12 + H * i / 12 + PMI + A

M is monthly principal and interest, H is home price, t is property tax rate, i is insurance rate, and A is monthly HOA dues.

Estimated cash needed
K = D + H * c

D is the planned down payment and c is the closing cost rate.

Debt-to-income calculations follow the Consumer Financial Protection Bureau's definition. The FHA-style comparison refers to HUD's current Single Family Housing Policy Handbook, while the VA-style comparison refers to the VA Lender's Handbook. These profiles are planning comparisons, not approval tests.

Mortgage affordability FAQ

Common questions about home affordability, debt-to-income ratios, and monthly housing budgets.

Is this the amount a lender will approve?
No. Lenders consider credit score, assets, employment history, loan program rules, interest rate locks, reserves, and other details. This calculator is for planning before getting lender quotes.
What debt-to-income ratio should I use?
A lower ratio is more conservative. The conventional 28/36 profile is a common starting point. FHA-style 31/43 and VA-style 41% are less conservative DTI profiles that can be useful for comparison, but they are not approval guarantees and do not model FHA mortgage insurance premiums or VA funding fees.
What is the 28/36 rule?
The 28/36 rule is a common mortgage affordability guideline for conventional loans. The 28% front-end ratio says monthly housing costs should stay at or below 28% of gross monthly income. The 36% back-end ratio says total monthly debt, including housing plus debts like auto loans, student loans, and credit card minimums, should stay at or below 36% of gross monthly income. Choose the conventional guideline profile to apply both limits.
Does my current mortgage count as debt?
If you are selling your current home and that mortgage will be paid off before or at closing, leave it out because it will not continue after buying. If you will keep the current home, count its monthly payment as debt, including the mortgage payment, property taxes, insurance, HOA dues, and any PMI.
Why did HOA or property taxes lower the home price?
The monthly budget is limited. Higher non-loan costs leave less room for principal and interest, which lowers the loan amount and home price the same budget can support.
Are closing costs included in the home price estimate?
Closing costs are included in the estimated cash needed, but they do not reduce the home price estimate unless you lower the down payment to keep more cash available. Real closing costs, prepaid taxes, prepaid insurance, moving costs, and lender reserve requirements can vary.

Use the estimate as a budget boundary

A lender's maximum and a comfortable household payment are different numbers. This estimate applies the entered income and debt limits, but it cannot see child care, utilities, repairs, health costs, or savings goals. Lower the housing ratio until the remaining monthly cash fits those obligations.

Test taxes, insurance, mortgage insurance, and association dues separately because each can change after purchase. The CFPB Loan Estimate guide explains which housing costs may appear in escrow and which may be paid directly. Leave room for closing cash and an emergency reserve rather than putting every available dollar into the down payment.

Before making an offer, compare the result with the debt-to-income calculator. Re-run both tools with the lender's actual rate and a realistic property tax estimate. The output is a planning range, not a preapproval or a guarantee that a particular loan program will accept the application.

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