Larger down payment
Down payment increases from 15.0% to 20.0%.
Current plan: $390,909Scenario: $438,244
Current plan
Scenario
Real estate calculator
Home Affordability Calculator
Estimate how much house may fit your income and debt picture in one calm planning layout. This calculator works from gross income, monthly debts, down payment, and full housing cost assumptions so you can see how taxes, insurance, HOA dues, PMI, and DTI targets shape affordability beyond principal and interest alone.
Editor
Home affordability assumptions
Estimate how much house may fit your income and debt picture by combining DTI-style planning ratios with the full monthly housing cost, not just principal and interest.
Monthly debts are the tighter affordability limit here, so lowering debts would raise the housing budget more than changing the front-end ratio alone.
Inputs
Start with income, debts, and the main homebuying assumptions. The affordability estimate updates instantly as you compare realistic planning scenarios.
Income
Use gross income before taxes and other payroll deductions.
This calculator uses gross income as the affordability base. It is meant for planning, not take-home-pay budgeting or final lender qualification.
Debts
Include recurring obligations like car loans, student loans, credit cards, and personal loans.
The total DTI side of the calculation subtracts these debts from the room available for monthly housing cost.
Down payment
Use either a percentage or a fixed dollar amount and keep it tied to the affordability estimate.
Switch between entering a percentage or a fixed dollar amount.
Mortgage assumptions
Use simple fixed-rate assumptions to convert the affordable housing budget into a loan amount and home price estimate.
Housing cost assumptions
Home affordability depends on full housing cost, not just principal and interest.
Affordability mode
Use a simple planning preset up front, then fine-tune the DTI assumptions only if needed.
The preset updates the editable ratios shown in Advanced options.
The monthly housing budget is based on the tighter limit between the housing ratio and the total DTI ratio after debts.
Advanced options
Adjust the planning ratios or PMI assumption if you want to model a different affordability framework.
28% housing ratio, 36% total DTI, and 0.65% PMI by default.
Results
Estimated home affordability
Use the dashboard to see the affordable home price, the full monthly housing cost behind it, and the DTI-style budget assumptions driving the estimate.
Estimated affordable home price
$390,909
This estimate keeps full monthly housing cost near $2,950.01 and is capped by your 36% total DTI after $1,100.00 in monthly debts. It is meant for planning, not approval.
Estimated monthly housing cost
$2,950.01
Principal, interest, taxes, insurance, HOA, and PMI when applicable.
Estimated loan amount
$332,272
Home price minus the modeled down payment.
Minimum modeled upfront cash
$58,636
Down payment only. Closing costs are not included in this value.
PMI is estimated with a flat annual rate for planning only. Actual PMI pricing can vary by lender, loan program, credit profile, and down payment structure.
Gross income
$135,000
About $11,250.00 per month before taxes.
Monthly debts
$1,100.00
Recurring monthly debt obligations included in total DTI.
Down payment
$58,636.29
15% of the affordability estimate.
Monthly housing budget
$2,950.00
The tighter of the housing-ratio limit and the total-DTI limit.
Monthly principal & interest
$2,155.11
Based on a 30-year fixed-rate mortgage estimate.
Non-mortgage housing costs
$794.90
Tax $390.91, insurance $114.01, HOA $110.00, PMI $179.98.
Total monthly housing cost
$2,950.01
This is why affordability is broader than principal and interest alone.
Front-end housing ratio
26.2%
Monthly housing cost divided by gross monthly income.
Back-end DTI estimate
36%
Housing cost plus debts divided by gross monthly income.
Affordability breakdown
This breakdown keeps the home price, loan amount, upfront cash, and full monthly housing cost in one place so it is easier to see what is driving affordability.
| Line item | Value |
|---|---|
| Affordable home price | $390,908.57 |
| Down payment | $58,636.29 15.0% of home price |
| Minimum modeled upfront cash | $58,636.29 Down payment only. Excludes closing costs and reserves. |
| Estimated loan amount | $332,272.28 |
| Monthly principal and interest | $2,155.11 |
| Monthly property taxes | $390.91 1.20% annual rate |
| Monthly homeowners insurance | $114.01 0.35% annual rate |
| Monthly HOA dues | $110.00 |
| Monthly PMI estimate | $179.98 0.65% annual PMI rate |
| Monthly non-mortgage housing costs | $794.90 |
| Total monthly housing cost | $2,950.01 |
What changes affordability most
Each scenario changes one practical planning lever so you can compare how much home price headroom that one change may create.
Current planScenario
Lower monthly debts
Monthly debts fall from $1,100 to $850.
Current plan: $390,909Scenario: $418,436
Current plan
Scenario
Lower interest rate
Mortgage rate falls from 6.75% to 6.00%.
Current plan: $390,909Scenario: $414,705
Current plan
Scenario
Less restrictive DTI
Housing ratio rises to 30.0% and total DTI rises to 39.0%.
Current plan: $390,909Scenario: $437,364
Current plan
Scenario
Monthly housing cost composition
This calm chart shows how much of the affordability result goes to principal and interest versus taxes, insurance, HOA dues, and PMI.
Principal and interest
73.1% of full housing cost
$2,155.11
Property taxes
1.20% annual rate
$390.91
Homeowners insurance
0.35% annual rate
$114.01
HOA dues
Flat monthly ownership cost
$110.00
PMI estimate
0.65% annual PMI rate
$179.98
Non-mortgage share26.9%
Practical note
Use this as a planning estimate, not an approval decision.
Lenders can use different debt-to-income limits, reserve requirements, PMI rules, taxes, insurance premiums, escrow setups, and loan-program details. A lender can give you exact qualification numbers, but this calculator is designed to make the major moving parts easier to understand before that step.
How it works
How this home affordability calculator works
This calculator estimates how much house may fit your income and debt picture by combining DTI-style planning ratios with a full monthly housing-cost view. It is designed for practical homebuying planning, not lender underwriting.
How the affordability estimate is built
The calculator starts with gross income before taxes, converts it to a monthly amount, then applies a housing ratio and a total DTI ratio. The lower of those two budget limits becomes the monthly housing budget used to solve for an estimated home price.
What counts in a monthly housing payment
Monthly housing cost includes principal and interest, property taxes, homeowners insurance, HOA dues, and PMI when the scenario calls for it. That fuller payment is usually more useful for planning than looking at mortgage principal and interest alone.
Why taxes, insurance, HOA dues, and PMI matter
Those costs can take up hundreds of dollars per month without reducing the mortgage balance. That means they can materially reduce the home price that still fits the same affordability target.
How debt-to-income affects affordability
Monthly debts limit how much of gross income can still go toward housing. If the back-end DTI side is tighter than the housing ratio, lowering debt can raise affordability even when income stays the same.
How down payment changes the affordable home price
A larger down payment reduces the loan amount needed for a given home price. That can lower the monthly principal-and-interest payment, cut PMI, and allow a higher purchase price to fit the same housing budget.
FAQ
How much house can I afford?
A practical answer starts with gross income, recurring debts, and the full monthly housing cost. That is why this calculator estimates an affordable home price from a monthly housing budget instead of just showing mortgage principal and interest.
Should I use gross income or take-home pay?
This calculator uses gross income before taxes and deductions because that is the common starting point for DTI-style planning. Your own personal budget should still consider take-home pay as a separate reality check.
What is included in a monthly housing payment?
The estimate includes principal and interest plus property taxes, homeowners insurance, HOA dues, and PMI when applicable. That broader view usually gives a more realistic home affordability picture.
Does PMI affect home affordability?
Yes. If the modeled down payment is below 20%, PMI can raise the monthly housing cost and reduce the home price that fits your budget. This calculator uses a flat PMI estimate rather than lender-specific pricing.
Do HOA dues and property taxes affect how much house I can afford?
Yes. HOA dues and property taxes are recurring ownership costs, so they take up part of the same monthly housing budget that would otherwise be available for principal and interest.
Is this the same as a mortgage pre-approval?
No. This is a planning calculator, not a mortgage pre-approval or an approval guarantee. Real qualification decisions can vary based on credit profile, reserves, taxes, insurance, escrow setup, program rules, and lender-specific underwriting.
Estimate disclaimer
This calculator provides affordability estimates only. Lenders may use different approval rules, and taxes, insurance, PMI, escrow, HOA dues, reserves, credit profile, and loan-program details can materially change the final result. Speak with a lender for exact qualification numbers and loan terms.
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