Home Affordability Calculator
Enter monthly income, living costs, savings, and loan terms on the left to see the appropriate home price, maximum mortgage, monthly payment, and DTI check on the right.
Input
Finances
Loan terms
Enter values and the result updates automatically.
Result
- Max loan
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- Monthly payment
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- Surplus after payment
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- Total interest
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- Total repayment
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- Current DTI
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Check points
This appropriate price estimates a comfortable repayment from your inputs and can differ from a lender’s actual limit, LTV, credit decision, PMI, property tax, and closing costs. Keep separate cash for rate changes and income shifts.
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- Results firstPut the main number up front and keep the process secondary.
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Read an affordable home price from the payment you can carry, not a lump sum
A home price is easier to judge from the payment you can carry every month than from a single big number. This tool sets a safe monthly payment from your available funds and target DTI, turns it back into a loan amount over your term and rate, and adds your savings to show an appropriate price.
The result is an affordability estimate, not a lender decision. Your real limit depends on credit score, loan program, LTV, PMI, property taxes, insurance, and closing costs, so treat this as a planning start and confirm the number with a lender.
Affordability starts from the monthly payment
Instead of asking how much you can pay once, the tool asks how much you can repay every month, then works backward.
- Safe monthly payment = min(available funds × 60%, income × target DTI − existing debt)
- Max loan = that payment converted to a principal over your term and rate
- Appropriate price = max loan + savings
What to enter and how to read it
On the left, enter monthly income, living costs, existing debt payments, and cash for the purchase, then set the loan term, interest rate, and target DTI. On the right the appropriate price, max loan, monthly payment, DTI and surplus bars, and check points update as you type.
DTI and the cushion after the payment
DTI is your debt payments divided by gross income. Many US lenders center on a back-end DTI near 36%, with room up to 43–50% given strong credit or reserves.
- Current DTI = existing payments ÷ income
- After-loan DTI = (existing + new payment) ÷ income
- Surplus after payment = available funds − monthly payment
How rate and term change the number
A longer term lowers the monthly payment but raises total interest, and a higher rate shrinks the loan a given payment can support, so the appropriate price falls. US 30-year fixed rates move with the market; use the conservative, balanced, and aggressive scenarios to compare quickly.
Why it differs from a lender’s number
This estimate centers on repayment comfort. A lender also weighs the loan-to-value ratio, private mortgage insurance when the down payment is under 20%, credit score, and program rules such as conventional, FHA, or VA.
- LTV and PMI depend on your down payment
- Property tax and homeowners insurance are ongoing costs
- Rate locks and points change the monthly figure
Budget the costs beyond principal and interest
The monthly payment here is principal and interest only. Closing costs often run 2–5% of the price, and property tax, insurance, HOA dues, PMI, maintenance, and moving costs continue after purchase. Keep those in a separate line so the appropriate price stays realistic.
Down payment and reserves protect the plan
A 20% down payment avoids PMI on a conventional loan, but many buyers put down less and add PMI to the budget. Keep an emergency fund after closing; a payment that leaves under 10% of income as surplus is a sign to lower the price or wait and save more.
Enter amounts and percentages the simple way
Amount fields add commas as you type and show a dollar form under the field. The term is in years, and the interest rate and target DTI are percentages. Nudging the rate up or the DTI down is a quick way to stress-test how much house still fits.
Home affordability questions people ask
How is the appropriate home price calculated?
The tool takes your monthly funds left after living costs and existing debt, and a payment cap from your target DTI, uses the more conservative of the two as a safe monthly payment, converts that payment into a loan principal (present value) over your term and rate, then adds your savings.
What is DTI?
Debt-to-income ratio is your monthly debt payments divided by gross monthly income. Many US lenders look for a back-end DTI around 36%, sometimes up to 43–50% with compensating factors. This tool shows both current and after-loan DTI.
Is this the same as a lender pre-approval?
No. It estimates comfortable repayment. Actual limits depend on your credit score, LTV, PMI, DTI rules, property taxes, insurance, and loan program, so confirm with a lender.
Does it include property tax, insurance, and closing costs?
No. The monthly payment is principal and interest only. Budget separately for property tax, homeowners insurance, HOA dues, PMI, and closing costs, which often run 2–5% of the price.
How do I enter the amounts?
Amount fields add thousands separators as you type and show a currency form below the field. Enter the interest rate and target DTI as percentages.
Reference date: 2026-07-14. The repayment limit and DTI use the standard equal-payment mortgage definition; local rules and rates vary.