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Mortgage Affordability Calculator

Find out the home price range that fits your income, debts, and down payment.

This affordability calculator estimates the home price range you can comfortably finance based on your income, monthly debt payments, down payment, and current interest rate. The result reflects common debt-to-income guidelines used by lenders.

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Result

Enter your values and tap "Estimate affordability" to see your result.

How to use this calculator

Enter your gross monthly income, recurring monthly debts, planned down payment, expected interest rate, and loan term. The calculator returns an estimated maximum home price along with the corresponding monthly payment.

How it works

This affordability calculator estimates the home price range you can comfortably finance based on your income, monthly debt payments, down payment, and current interest rate. The result reflects common debt-to-income guidelines used by lenders.

Frequently asked questions

What debt-to-income ratio do lenders use?

Many lenders use a 28/36 rule: housing payment up to about 28% of gross monthly income, and total debt up to about 36%. Some loan programs allow higher ratios.

Why does the down payment matter?

A larger down payment reduces the loan principal, which lowers the monthly payment and total interest. It can also remove the need for private mortgage insurance.

Are taxes and insurance included?

Most affordability rules of thumb assume housing payment includes principal, interest, taxes, and insurance (PITI). Confirm what your local lender includes in the ratio.

How does interest rate change affordability?

Higher rates reduce the loan size you qualify for at the same monthly payment. A 1 percentage-point rise can reduce buying power by roughly 10%.

Should I borrow the maximum I qualify for?

Not necessarily. Qualifying for a payment is not the same as comfortably affording it once you factor in maintenance, utilities, savings goals, and lifestyle costs.

How to use the Mortgage Affordability Calculator

Estimate how much home you can afford based on income, debts, down payment, and interest rate; understand DTI ratio thresholds; set a realistic home search budget.

Example workflow

Enter your gross monthly income, existing monthly debt payments, down payment amount, and current interest rate. The calculator returns an estimated maximum purchase price and monthly mortgage payment.

Common search topics

Regional use

Rates, costs, codes, and measurement standards vary by location. This calculator supports common use cases in:

Frequently asked questions

What debt-to-income ratio do lenders typically require?

Most conventional lenders prefer a total DTI (all debts including the new mortgage) below 43%. Some loan programs allow up to 50%, but lower DTI typically means better rates and easier approval.

How does my down payment affect affordability?

A larger down payment reduces the loan amount, lowers monthly payments, and eliminates private mortgage insurance (PMI) if you reach 20% of the home value. It also improves your loan-to-value ratio, which can affect your interest rate.

Does this estimate include property tax and insurance?

The base mortgage payment covers principal and interest. Property tax, homeowner's insurance, and HOA fees are additional. Many lenders use PITI (principal, interest, taxes, insurance) for qualification — add an estimated 1–2% of home value annually for taxes and insurance.

How does my credit score affect the mortgage rate?

Credit scores significantly affect the interest rate you're offered. A score above 760 typically qualifies for the best available rates; scores below 620 may limit loan options. Check your score before starting a home search.

Should I get pre-approved before house hunting?

Yes. Pre-approval gives you a confirmed budget, strengthens your offer, and reveals any credit issues before you find a home you want to buy.

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People also ask

How much of my income should go toward a mortgage?

The 28/36 rule is a standard guideline: housing costs should be at most 28% of gross monthly income, and total debt payments at most 36%. Some lenders allow higher ratios with compensating factors like large reserves or excellent credit, but staying under 28% leaves more room for maintenance, savings, and unexpected costs.

What is included in a mortgage payment beyond principal and interest?

Most lenders collect PITI — principal, interest, property taxes, and homeowner's insurance — as a single monthly payment, with taxes and insurance held in an escrow account. PMI is added if your down payment is below 20%. HOA dues are separate but must be included in your total housing budget.

Does getting pre-approved hurt my credit score?

A single pre-approval generates a hard inquiry, which typically reduces your score by 5 points or fewer. Multiple mortgage inquiries within a 14–45 day window are generally counted as one inquiry by scoring models, so rate shopping within that window has minimal additional impact.

Real-world scenarios

Stress-testing your budget before applying

Enter your target home price, then run the same calculation at a rate 1% higher than today's average. Mortgage rates can move quickly — verifying that your budget holds at 7.5% when you're planning at 6.5% protects you if rates shift during the home search or before closing.

Comparing a higher-priced home with a lower down payment

A $500,000 home with 10% down vs a $450,000 home with 20% down: the cheaper home with more down eliminates PMI and produces a lower monthly payment despite the lower price being only 10% less. Use the affordability calculator to compare total monthly obligations, not just purchase prices.

Including student loans in your DTI calculation

Federal student loan payments — even if deferred — must be included in DTI for most loan programs using either the actual payment or 0.5–1% of the balance. A $60,000 student loan balance adds $300–$600/month to your DTI calculation. This can meaningfully reduce your maximum qualifying loan amount.