How Much Home Can You Afford?
Estimate the home price and monthly mortgage payment that may fit within your income, debts, down payment and mortgage assumptions.
Enter Your Financial Information
Add your income, existing monthly debts, down payment and mortgage assumptions to estimate an affordable home price.
Income & Debts
Your monthly obligationsHome Purchase
Down payment & property costsMortgage Assumptions
Loan termsYour Estimated Affordability
Based on the information you entered
Affordability Insight
Enter your information to estimate a potential home price and monthly housing cost.
About the Mortgage Affordability Calculator
This mortgage affordability calculator estimates a potential home purchase price based on your gross income, existing monthly debt obligations, down payment and selected mortgage assumptions.
The calculation considers principal and interest, estimated property taxes, homeowners insurance and HOA costs.
The calculator uses a housing expense ratio entered by the user to determine the maximum monthly housing cost used in the affordability estimate.
This is an affordability estimate rather than a mortgage approval calculation. Lenders can consider additional factors including credit history, assets, employment, loan program requirements and their own underwriting standards.
How to Use the Calculator
Enter Income
Enter your gross annual income and recurring monthly debt payments.
Add Home Costs
Enter your down payment, property taxes, insurance and any monthly HOA costs.
Review Results
Review the estimated home price, loan amount and monthly housing payment.
How It Works
First, the calculator converts your annual gross income into a monthly income figure.
Your selected housing ratio is then used to estimate the maximum monthly housing expense that fits within the specified income percentage.
Existing monthly debt payments are considered separately when evaluating the affordability result.
The calculator then estimates the mortgage principal and interest payment that can fit within the available housing budget after estimated property taxes, insurance and HOA costs.
If a household earns $100,000 annually and chooses a 28% housing ratio, the calculator uses the corresponding monthly income and housing budget to estimate a potential mortgage payment and home price.
What Affects How Much Home You Can Afford?
Income
Higher gross income generally provides more room for housing expenses under a fixed affordability ratio.
Existing Debt
Car loans, student loans, credit card payments and other recurring obligations can affect how much monthly debt a household can reasonably carry.
Down Payment
A larger down payment generally means a smaller mortgage principal for the same home price.
Interest Rate
The interest rate affects the monthly principal and interest payment. Higher rates generally produce a higher payment for the same loan amount.
Property Taxes and Insurance
The cost of owning a home includes more than principal and interest. Property taxes and homeowners insurance can materially affect the total monthly housing expense.
HOA Fees
Homes located in communities with homeowners association fees can have an additional recurring monthly expense.
Mortgage Affordability vs. Mortgage Approval
An affordability calculator and a lender’s underwriting process are not the same thing.
This calculator uses the assumptions you provide to produce an estimated affordability figure. A lender may evaluate credit history, income documentation, employment history, assets, liabilities, loan type, property characteristics and other underwriting criteria.
The maximum amount shown by a calculator should therefore not automatically be treated as the amount a household should borrow.
A buyer may also want to consider maintenance, utilities, property repairs, insurance changes, taxes and other ownership expenses that are not fully represented by a basic mortgage payment.
Understanding Your Monthly Mortgage Payment
A typical mortgage payment can include several components. Principal represents the portion that reduces the loan balance, while interest represents the financing cost charged by the lender.
Property taxes and homeowners insurance may also be collected monthly through an escrow account depending on the loan and lender arrangement.
HOA fees, if applicable, are generally separate from the principal and interest payment and should be considered when evaluating total housing costs.
This calculator is provided for educational and informational purposes only. It is not a mortgage approval tool, financial advice, lending decision or guarantee of loan eligibility. Actual affordability and loan terms depend on lender requirements, credit profile, income, assets, debts, property characteristics, taxes, insurance, interest rates and other factors.