Home affordability calculator
Estimate a home price that fits your income, existing debts, down payment, and housing costs.
Your numbers
Rates shown are editable examples, not current offers.
Estimated home price
$399,038With a $2,800 monthly housing payment at your targets.
- Monthly housing budget
- $2,800
- Loan amount
- $339,038 (85.0% of price)
- Principal & interest
- $2,143
- Property taxes & insurance
- $516
- Mortgage insurance & HOA
- $141
- Housing / total debt-to-income
- 28.0% / 34.0%
Understand this estimate
Starts from gross monthly income. The housing target caps the full housing payment (principal, interest, property taxes, insurance, HOA dues, and mortgage insurance); the total-debt target caps that payment plus your other monthly debts. The lower of the two sets the budget, and the calculator solves for the home price whose payment fits it. Mortgage insurance applies only while the loan is over 80% of the price. Lenders apply their own debt-to-income limits, which can be higher than these planning targets. Excludes closing costs, reserves, maintenance, and utilities. This is a planning estimate, not a preapproval.
How the calculation works
The calculator starts with your gross monthly income and applies two targets. The housing target limits the full monthly housing payment: principal, interest, property taxes, homeowners insurance, HOA dues, and any mortgage insurance. The total-debt target limits that payment plus the other monthly debts you enter. Whichever target produces the smaller amount becomes your monthly housing budget.
It then solves for the home price whose payment fits that budget. Property taxes are a percentage of the price, principal and interest come from the standard amortization formula on the price minus your down payment, and mortgage insurance is added only while the loan is more than 80% of the price.
Worked example: $120,000 of income
With $120,000 of gross income, the 28% housing target allows $2,800 a month. The 36% total-debt target allows $3,600, minus $600 of existing debt payments, or $3,000. The lower figure, $2,800, becomes the budget. With $60,000 down at 6.5% for 30 years, a 1.1% property tax rate, $1,800 of annual insurance, and mortgage insurance at 0.5% of the loan, the estimated price is $399,038: $2,143 of principal and interest, $516 of taxes and insurance, and $141 of mortgage insurance. Raising the down payment to $90,000 lifts the estimate to $444,757, partly because the loan falls below 80% of the price and mortgage insurance drops away. With $1,500 of monthly debts instead of $600, the total-debt target becomes the limit and the estimate falls to $307,583.
Common questions
What is a debt-to-income ratio?
It is your monthly debt payments divided by your gross monthly income. Lenders use it as one measure of whether a new payment fits your budget, alongside credit, savings, and the loan program’s own rules.
Why start with 28% and 36%?
They are a long-standing planning rule of thumb, not a lender requirement. Many loan programs allow higher ratios. Starting lower leaves more room for savings, childcare, retirement, and the costs of owning a home, and you can change both targets.
Does this include closing costs?
No. The down payment you enter is assumed to go toward the price. Plan separately for closing costs, moving, and a cash reserve after closing.
Is this the same as a preapproval?
No. A preapproval reflects a lender’s review of your application, credit, income, and assets. This estimate shows how a price relates to your own budget targets.
Related guides
Put the numbers in context.
The right decision includes your budget, other goals, fees, and terms you can sustain.
Explore your next step