Need context? Read our mortgage and home buying guide for assumptions and strategy.
Read the guideHome affordability guide
This calculator estimates a housing budget based on your income, debts, and down payment. It applies a common affordability guideline to help you set a reasonable target.
Income and debts
Monthly income and existing debts determine how much room you have for housing costs.
Down payment
A larger down payment reduces the loan amount and can improve loan terms.
Non-mortgage costs
Property taxes, insurance, and HOA fees can change affordability significantly.
How the guideline works
- Uses a front-end and back-end debt ratio as a planning baseline.
- Compares the housing budget against your current monthly debts.
- Estimates a max price based on your interest rate and term.
Improve accuracy
- Use realistic estimates for property taxes, insurance, and HOA fees.
- Consider your actual monthly budget, not just lender limits.
- Plan for maintenance, moving costs, and future repairs.
Questions to ask before buying
- Would the payment feel comfortable if income changes?
- Do you have a cash buffer after the down payment?
- Are you prepared for annual tax and insurance increases?
Home affordability calculator FAQ
How much house can I afford?
Affordability depends on your income, debts, down payment, interest rate, and other costs. This calculator uses a common guideline to estimate a reasonable monthly payment.
What guideline does this calculator use?
The calculator uses a common front-end and back-end debt guideline to estimate a housing budget. Actual lender requirements can vary.
What is DTI ratio and why does it matter?
DTI (Debt-to-Income) ratio is the share of your gross monthly income that goes to debt payments. Lenders use it to determine how much you can borrow, but limits vary by program.
Should I put 20% down?
Larger down payments reduce the loan amount and can avoid mortgage insurance, but you should keep enough cash for emergencies and closing costs.