Calculate Your Home Budget
Enter your income, debts, and down payment to see what you can afford
Affordability Calculator
Discover how much you can comfortably afford
💡 Pro Tip
Lenders qualify you based on maximum limits, but you should also consider your comfort level. Aim for a monthly payment that's 25-28% of your gross income to maintain financial flexibility.
How the Affordability Calculator Works
Our home affordability calculator uses the same formulas mortgage lenders use to determine your maximum home price. We analyze your gross income, existing monthly debts, down payment, and current interest rates to calculate exactly how much home you can afford.
Unlike simple calculators that just multiply your income, we factor in your complete financial picture including debt-to-income ratios, property taxes, insurance, and PMI to give you a realistic, lender-approved budget range.
What Sets Our Calculator Apart
- DTI-Based Calculations: Uses actual debt-to-income ratios lenders require (28/36 front/back-end ratios)
- Complete Cost Analysis: Includes PITI (principal, interest, taxes, insurance) plus PMI and HOA fees
- Real-Time Interest Rates: Factors in current market rates for accurate payment estimates
- Multiple Scenarios: Test different down payment amounts to see how they affect your buying power
- Conservative Estimates: Provides realistic numbers that won't overextend your finances
The calculator is designed to give you confidence when house hunting. Knowing your true budget means you can make offers quickly, negotiate effectively, and avoid the disappointment of falling in love with a home you can't afford.
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After calculating your affordability, get pre-approved to lock in your budget and start house hunting with confidence.
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Let our expert team help you turn these calculations into reality
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Why Knowing Your Budget Matters
Overbuying Risk
Stretching too far financially leaves no room for emergencies or lifestyle expenses
Hidden Debt Impact
Student loans and car payments reduce your buying power more than most people realize
Wasted Time
Looking at homes outside your budget wastes time and creates disappointment
Lifestyle Strain
Without a proper budget, homeownership can become stressful instead of enjoyable
Understanding Home Affordability
The 28/36 Rule
Lenders typically follow the 28/36 rule: your housing payment (including taxes and insurance) should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36%. This ensures you have enough income for other expenses and savings.
Down Payment Impact
Your down payment directly affects both your loan amount and monthly payment. Put down less than 20% and you'll pay PMI, which adds to your monthly cost. However, many buyers successfully purchase with 3-5% down using FHA or conventional loans. The key is balancing upfront costs with monthly affordability.
Pre-Approval Benefits
Getting pre-approved after calculating your affordability gives you a huge advantage. Sellers take your offers seriously, you can move quickly in competitive markets, and you avoid wasting time on homes outside your budget. Pre-approval turns estimates into guarantees.
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Frequently Asked Questions
What factors determine how much house I can afford?
Lenders primarily look at your gross income, monthly debts (credit cards, auto loans, student loans), down payment amount, credit score, and the current interest rates. The calculator uses your debt-to-income ratio (DTI) - typically lenders prefer 43% or less of your gross monthly income going toward all debts including your future mortgage.
What is debt-to-income (DTI) ratio and why does it matter?
DTI is the percentage of your gross monthly income that goes toward paying debts. For example, if you earn $6,000/month and have $1,800 in debt payments, your DTI is 30%. Lenders use DTI to assess whether you can afford a mortgage payment. Most conventional loans require DTI under 43%, though some programs allow up to 50%.
Should I use gross or net income?
Always use your gross income (before taxes and deductions) when calculating affordability. Lenders qualify you based on gross income, not take-home pay. This is your salary before any deductions for taxes, 401k, health insurance, etc.
How does my down payment affect what I can afford?
A larger down payment reduces your loan amount, which lowers your monthly payment and potentially eliminates PMI if you put down 20% or more. This can significantly increase the home price you can afford while keeping monthly payments manageable.
What monthly debts should I include?
Include all recurring monthly obligations: credit card minimum payments, auto loans, student loans, personal loans, child support/alimony. Do NOT include utilities, groceries, or other variable expenses - lenders only count debts reported to credit bureaus.
Can I afford more than the calculator suggests?
The calculator shows what lenders will approve, but you should also consider your comfort level and lifestyle needs. Just because you qualify for a $500K home doesn't mean you should buy one. Leave room in your budget for savings, entertainment, emergencies, and life changes.
What if I'm self-employed or have irregular income?
Self-employed buyers typically need 2 years of tax returns showing consistent income. Lenders will average your income over 24 months. If your income fluctuates, use the calculator with your average monthly income to get a realistic estimate of what you can afford.
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