Home Affordability Calculator

1. Enter your annual income and current monthly debts.
2. Enter your down payment, the mortgage rate and the term.
3. Set the debt-to-income limit, or leave it at 36 percent.
4. Read the home price, the maximum loan and the monthly payment.

Here is what each result means:

Home affordability is the price of a house you can comfortably finance given your income, your existing debts and how much you can put down. Lenders judge it mainly through your debt-to-income ratio, the share of your gross income that goes to debt payments, because it predicts whether you can keep up with a mortgage.

A widely used guideline caps total debt payments, including the new mortgage, at about 36 percent of gross monthly income, though limits vary by lender and loan type. This calculator applies that cap: it works out the largest mortgage payment your income allows after your current debts, then converts that payment into a loan amount and adds your down payment to give a price.

The result is a planning figure, not an offer. It shows the ceiling your income supports under a chosen limit, which helps you set a realistic budget before you shop. A larger down payment, fewer existing debts or a longer term all raise the price you can reach.

One important caveat: the payment here is principal and interest only. Real ownership adds property tax, home insurance and sometimes mortgage insurance, which a lender counts within your limit. Treat this as an optimistic upper bound and leave room for those costs.

It caps your payment by income, then turns that payment into a price.

1. Your monthly income is multiplied by the debt limit to cap total debt.
2. Existing debts are subtracted to leave room for the mortgage payment.
3. That payment is converted to a loan at your rate and term, and the down payment is added.

For the payment on a set price, see the mortgage calculator. To check your ratio, see the debt-to-income calculator.

Income $80,000, monthly debts $400, down payment $40,000, rate 6.5%, term 30 years, limit 36%.

Result: the payment cap is 36 percent of $6,667, which is $2,400, minus $400 of debts, leaving about $2,000 for the mortgage. At 6.5 percent over 30 years that supports roughly a $316,000 loan, so with $40,000 down you could afford about $356,000, before taxes and insurance.

The limit is the single biggest lever in the calculation.

A higher limit lets you borrow more but leaves less cushion for other costs and emergencies. Lenders also apply a separate front-end limit for housing alone. Choosing a limit you are comfortable with matters as much as the one a lender will permit.

Income

More gross income raises the payment cap in direct proportion.

Existing Debts

Car loans, student loans and cards all reduce the payment left for a mortgage.

Down Payment

A larger down payment adds directly to the price you can reach.

Rate and Term

A lower rate or longer term lets the same payment support a bigger loan.

Before House Hunting

Set a realistic price range so you shop in the right bracket.

Planning a Down Payment

See how saving more changes the price you can reach.

Paying Down Debt First

Check how clearing a car loan lifts your affordability.

Affordability is a ceiling, not a target. Compare it with what fits your budget.

Many buyers deliberately purchase below their maximum to keep breathing room. The calculator shows what your income allows; your comfort and other goals decide how much of that headroom to actually use.

1. Treating the Ceiling as a Target

The maximum is not a recommendation. Buying below it leaves margin for life.

2. Forgetting Taxes and Insurance

The payment here is principal and interest only; real costs are higher.

3. Leaving Out Debts

Skip your car or card payments and the price will look too high.

4. Using Net Income

Lenders use gross income before tax, so enter that for a comparable figure.

5. Ignoring the Down Payment Effect

Saving more down payment raises the price directly, dollar for dollar.

This is a planning estimate using a standard mortgage and a debt limit.

It depends on your debts, down payment, rate and term. As a guide, cap total debt at about 36 percent of gross income; this calculator turns that cap into a price.

A common guideline: spend no more than 28 percent of gross income on housing and no more than 36 percent on total debt. This tool uses the 36 percent total-debt limit by default.

No. The payment here is principal and interest only. Property tax, home insurance and PMI add to the real cost and reduce what you can afford.

It adds directly to the price. Every extra dollar of down payment raises the home price you can afford by a dollar, on top of the loan.

Usually not. The maximum is a ceiling, not a target. Buying below it leaves room for taxes, maintenance and emergencies.

Gross income, before tax. Enter your gross figure so the result lines up with how a lender assesses you.

They reduce the payment left for a mortgage. Paying off a car loan or card can noticeably raise the price you can afford.

No. It is a planning estimate. A lender pre-approval considers your credit, documents and full costs, and is the real measure of what you can borrow.

No. The calculation runs in your browser and nothing you enter is stored or sent anywhere, unless you choose Save, which keeps the result only on this device.

• Debt-to-income ratio (Wikipedia).
• Mortgage (Wikipedia).
• CFPB: How much can you afford (CFPB).