Estimate a home price that fits your income, current monthly debts, down payment and expected housing costs. Adjust the targets to compare a more conservative budget with a lender-style scenario.
Enter your monthly budget details
Additional costs & assumptionsOptional — taxes, insurance and lending targets
Estimated home affordability
This estimate is educational and does not determine mortgage approval. It excludes closing costs, maintenance, utilities and changes to rates, taxes or insurance. Lenders also consider credit, assets, reserves, loan type and underwriting rules.
How the home affordability calculator works
The calculator begins with gross monthly income. It creates two limits: the selected housing budget percentage and the selected total debt-to-income limit after subtracting your existing monthly debt payments. The lower amount becomes the available monthly housing budget.
It then estimates a home price whose principal, interest, property tax, insurance, mortgage insurance and HOA costs fit that budget. The loan amount equals the estimated home price minus your down payment.
Example affordability estimate
With the default example—$120,000 annual income, $750 in other monthly debt, a $60,000 down payment and a 6.5% 30-year mortgage—the calculator estimates a home price near $414,000. The estimated housing payment is about $2,800 per month, producing a housing DTI near 28% and total DTI near 35.5%.
What should you include in monthly debts?
Include recurring required payments such as auto loans, student loans, credit card minimums, personal loans, alimony or other obligations a lender may count. Do not enter normal living costs such as groceries or utilities as debt payments, but keep them in your real-life budget before deciding what feels affordable.
For a formal definition, see the Consumer Financial Protection Bureau’s DTI explanation. Fannie Mae’s current debt-to-income guidance also shows why maximum ratios depend on the underwriting path and borrower circumstances.
How to use the estimate safely
- Compare the estimate with your current rent, savings rate and emergency fund.
- Test higher interest rates, taxes, insurance and HOA costs.
- Leave room for maintenance, repairs, utilities and closing costs.
- Use the result as a planning range, then confirm figures with qualified lenders and local professionals.
Frequently asked questions
Does this calculator guarantee mortgage approval?
No. It is a planning tool. Approval depends on lender rules, credit, income documentation, assets, loan type, property details and other underwriting factors.
Why does existing debt reduce the affordable home price?
Existing monthly obligations use part of the total DTI allowance. That leaves less monthly room for a new housing payment.
Does the estimate include property tax and insurance?
Yes. It includes the property-tax rate and annual insurance amount you enter, plus optional monthly mortgage insurance and HOA dues.
Are closing costs included?
No. Closing costs and required cash reserves are separate from the down payment and should be planned independently.
What if my down payment is below 20%?
You can add a monthly mortgage-insurance estimate. The actual requirement and cost depend on the loan program and lender.
Continue planning
Money Basics Hub provides educational information, not personalized financial, mortgage, tax or legal advice. Confirm costs and loan terms with qualified professionals before making a decision.