Home Affordability Calculator

What this tool does

Estimate a home price from annual income, monthly debts, a down payment, a rate, and housing costs you enter. The page works backward from a housing budget. It does not say a lender will approve that price.

How to use

1. Enter annual gross household income and the monthly debt you already pay.
2. Choose a down payment as a percent of the home price or as a dollar amount.
3. Enter a rate, a term, and a property tax rate. The sample rate and the 1% tax rate are examples.
4. Leave insurance, HOA, and PMI blank for 0, or type your own estimates.
5. Set a target ratio. 36% is the sample assumption, not a lender rule.

Examples

• 120,000 income and 500 in monthly debt

  Monthly gross income is 10,000. At a 36% target, 3,600 can go to housing plus that debt, so about 3,100 is left for housing before you add tax, insurance, HOA, or PMI.

• Debts that use the whole target

  If existing debt is already at or above the target, the page says there is no housing budget. It does not show a home price of 0.

Main features

• A housing budget after existing monthly debt is subtracted.
• Principal and interest, tax, insurance, HOA, and PMI shown as separate lines.
• A 28%, 30%, and 36% scenario comparison.

How it works

Monthly gross income is annual income divided by 12. The target ratio times that income is the assumed cap for housing plus the debts you entered. Existing debt is subtracted. What remains has to cover principal and interest, property tax, insurance, HOA, and PMI. Property tax is the rate you enter times the home price. A percent down payment is a share of that price. A dollar down payment is added to the loan amount. The 28%, 30%, and 36% rows use the same other inputs and do not rank one ratio as better.

Tips

• Change the target ratio if you want a tighter or looser assumption. The page does not treat 36% as a rule.
• PMI is the monthly amount you type. This page does not decide whether a loan has PMI.

Limitations

The result is an educational estimate from the information you enter. It is not personalized financial advice, a guaranteed rate, or an approval. Actual limits depend on the lender, credit, location, taxes, insurance, and loan program.

See the disclaimer for what these tools do not cover.

FAQ

How much house can I afford?

This page estimates a price from the income, debts, down payment, rate, and housing costs you type. It is not a promise that you can buy that home.

How is home affordability calculated?

It starts from a share of monthly gross income, subtracts existing debt, and solves for the loan and home price that fit the remaining housing budget.

Does debt affect how much house I can afford?

Yes. Monthly debt you enter is subtracted before the housing budget is used to size the loan.

How does a down payment affect affordability?

A percent down payment is a share of the estimated price. A dollar down payment is added to the loan amount. The label shows which one you are using.

What is a housing debt-to-income ratio?

Here it is the target share of monthly gross income used for housing plus the debts you entered. You choose the percent. It is an assumption, not a lender policy.

Does PMI affect home affordability?

A monthly PMI amount you type is part of the housing budget, so less is left for principal and interest. Blank means 0.

Do property taxes and insurance affect affordability?

Yes. The tax rate is applied to the home price, and yearly insurance is divided by 12. Both reduce the amount left for the loan payment.

Are these numbers sent to a server?

No. Income, debts, and the down-payment percent are used in this tab. They are not sent anywhere.

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