Home Affordability Calculator

This calculator answers the most common home-buying question: how much house can I afford? Enter three numbers — your annual income, monthly debt payments, and how much you've saved for a down payment — and get an instant estimate of your maximum home price.

1. Annual income — your gross (pre-tax) yearly earnings. If you're buying with a partner, combine both incomes.
2. Monthly debts — the total of all recurring minimum payments: car loans, student loans, credit card minimums, and other fixed obligations. Don't include utilities or groceries.
3. Down payment — cash you can put toward the purchase. More down means more house and potentially no PMI.

For a more precise estimate, open Advanced Settings to fine-tune the interest rate, DTI ratio, property tax rate, insurance, and HOA fees. The result updates instantly as you change any input.

Lenders look at your debt-to-income ratio (DTI) — the percentage of your gross monthly income that goes toward all debt payments, including the proposed mortgage. Most conventional lenders cap this at 36%, though some allow up to 43% or higher for strong borrowers.

Your monthly housing cost isn't just the mortgage payment. It also includes property tax (typically 0.5% to 2.5% of home value per year), homeowners insurance, PMI (if your down payment is under 20%), and possibly HOA dues. All of these eat into the monthly budget you can devote to the mortgage itself.

The interest rate has a massive impact. At 6%, a $300,000 loan costs $1,799/month. At 8%, the same loan costs $2,201 — that's $400 more every month, or $144,000 over 30 years. Even a small rate difference meaningfully shifts what you can afford.

• Pay off debts before applying — eliminating a $300/month car payment frees that entire amount for housing costs, potentially adding $50,000+ to your affordable home price.
• Save a larger down payment — hitting 20% eliminates PMI and directly increases your purchasing power.
• Improve your credit score — a higher score gets you a lower interest rate, which stretches the same monthly payment to cover a bigger loan.
• Consider a longer loan term — a 30-year mortgage has lower monthly payments than a 15-year, giving you a higher affordable price (though you'll pay more interest over time).
• Shop for lower insurance and taxes — rates vary by location and provider. A lower property tax area or cheaper insurance quote puts more of your budget toward the mortgage.