Mortgage Affordability Calculator
Estimate how much home you may be able to afford based on your income, monthly debts, down payment, interest rate and estimated housing expenses.
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- Results shown instantly
Affordability Range
Affordability is not a single number. Different assumptions about debt-to-income limits, rates, taxes, insurance and other expenses can materially change the estimate.
More Conservative
$298,659
Tighter DTI (26% / 34%)
Payment $2,083.33/mo · Loan $258,659
Estimated Target
$320,918
Your settings (28% / 36%)
Payment $2,250.00/mo · Loan $280,918
Higher Budget
$343,178
Looser DTI (30% / 38%)
Payment $2,416.67/mo · Loan $303,178
Debt-to-Income Estimate
DTI compares certain monthly debt obligations with gross monthly income. This is an estimate, not lender approval. Lenders use different underwriting standards depending on loan program, borrower profile, credit, assets and other factors.
Estimated Monthly Housing Payment
Percentages are based on the complete estimated monthly housing payment. Categories with a $0 value are hidden.
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How Much House Can I Afford?
Affordability depends on many factors working together. No single number determines what you can spend — lenders weigh your income against your debts and the full cost of owning the home.
Calculator results are estimates, not lending decisions. The actual amount a lender will finance depends on your credit profile, income verification, assets, the property, and the loan program — all of which can differ from the assumptions here. For a specific payment on a specific home price, use our Mortgage Calculator.
How Debt-to-Income Ratio Affects Home Affordability
Debt-to-income ratio (DTI) compares certain monthly debt obligations with your gross monthly income. Two limits matter for affordability:
Housing ratio (front-end)
Your monthly housing payment as a share of gross monthly income.
Total DTI (back-end)
All monthly debts — housing plus existing debt — as a share of gross monthly income.
This calculator uses the more restrictive of the two limits to set the estimated maximum housing payment. Lender standards vary by loan program and borrower profile, so the ratios here are adjustable assumptions — not universal requirements.
How Your Down Payment Changes Affordability
A larger down payment can:
- Reduce the amount financed
- Reduce monthly principal and interest
- Reduce total interest when other variables remain equal
- Potentially affect mortgage-insurance costs
A 20% down payment is not required to buy a home. Many loan programs allow lower down payments, though they may include mortgage insurance or other requirements. The right down payment depends on your budget and how much cash you want to keep available.
How Interest Rates Affect Buying Power
Higher rates generally increase the payment required for the same loan amount, which can reduce the estimated home price supported by a fixed monthly housing budget.
Illustrative Example
Loan principal a $$1,800/month P&I budget supports at each rate, 30-year term.
| Interest Rate | Supported Loan | Monthly P&I |
|---|---|---|
| 4% | $377,030 | $1,800.00 |
| 5% | $335,307 | $1,800.00 |
| 6% | $300,225 | $1,800.00 |
| 7% | $270,554 | $1,800.00 |
Example rates are hypothetical and are not current mortgage-rate quotes. Your actual rate depends on your lender, credit profile, loan program, and market conditions.
How Existing Debt Affects Home Affordability
Existing monthly debt reduces the amount of income available for a housing payment under a DTI-based affordability calculation. Debt that counts toward DTI commonly includes:
- Auto loans
- Student loans
- Credit-card minimums
- Personal loans
- Other qualifying debt
Normal living expenses like groceries, utilities, and entertainment are generally not counted as DTI debt. Lowering existing debt can free up more of your income for a housing payment and raise your estimated affordability.
Mortgage Affordability Calculator Methodology
- Income calculation: gross monthly income = (annual gross income + additional annual income) ÷ 12.
- Monthly debt calculation: the sum of your entered monthly debt payments (auto, student, credit-card minimums, personal loans, child support, other).
- Housing ratio: the front-end limit: gross monthly income × the selected housing ratio.
- Total DTI calculation: the back-end limit: gross monthly income × the selected total DTI, minus existing monthly debt.
- More restrictive limit: the estimated maximum housing payment is the lower of the housing ratio and the debt-based limit, never negative.
- Mortgage-payment calculation: the standard fixed-rate amortization formula, M = P × [r(1+r)^n] / [(1+r)^n − 1], with 0% handled as M = P ÷ n.
- Reverse calculation of supported principal: solved as P = M × [(1+r)^n − 1] / [r(1+r)^n] from the principal-and-interest budget remaining after non-loan costs.
- Taxes: entered as an annual percentage of home value, divided by 12 — part of the housing payment, not the loan balance.
- Insurance: entered as an annual amount, divided by 12 — part of the housing payment, not the loan balance.
- PMI: an annual percentage of the loan amount divided by 12 (or an auto-estimate when the down payment is below 20%); part of the housing payment and never part of the loan balance.
- HOA & other costs: entered as monthly amounts and added directly to the housing payment — not part of the loan balance.
- Down payment: added to the supported loan principal to estimate the affordable home price.
- Rounding: all calculations are performed using full numerical precision internally and rounded only for display.
- Scenario ranges: the conservative and higher-budget scenarios use slightly tighter and looser DTI ratios to show a range; the middle estimate is the primary result.
MoneyMetric HQ calculations use full numerical precision internally and round values for display. Taxes, insurance, PMI, HOA, and other housing expenses do not reduce the mortgage principal — they are part of your estimated monthly housing payment only.
See our MoneyMetric HQ Methodology page for the general approach behind all MoneyMetric HQ calculators.
Home Affordability Example
Illustrative Example
- Annual Gross Income: $100,000
- Monthly Debt: $750
- Down Payment: $40,000
- Interest Rate: 6.5%
- Loan Term: 30 years
- Housing Ratio: 28% · Total DTI: 36%
Using these assumptions, the estimated affordable home price is approximately $320,918, with an estimated loan amount of $280,918 and an estimated monthly housing payment of $2,250.00. The estimated total DTI is 36%.
This example is illustrative. It does not represent mortgage approval, a lending offer, or a current market interest rate. Your situation, lender standards, taxes, insurance, and other costs will differ.
Mortgage Affordability Calculator FAQs
How much house can I afford?
It depends on your income, existing debts, down payment, interest rate, loan term, and housing costs like taxes, insurance, PMI, and HOA. This calculator estimates a home-price range from those inputs — it is not a lending decision.
How does income affect mortgage affordability?
Higher gross monthly income raises both the housing-ratio limit and the total-DTI limit, which can increase the estimated home price. Lower income reduces both.
What is debt-to-income ratio?
DTI compares certain monthly debt obligations with your gross monthly income. A housing ratio covers just the housing payment; total DTI includes all monthly debts. Lenders use both, with standards that vary by program.
What monthly debts are included in DTI?
Commonly auto loans, student loans, credit-card minimums, personal loans, child support, and other qualifying debt. Normal living expenses like groceries and utilities are generally not included.
Does a larger down payment increase affordability?
It can. A larger down payment reduces the amount financed, lowers principal-and-interest payments, may reduce total interest, and can affect mortgage-insurance costs — all of which can raise the estimated affordable home price.
How do mortgage rates affect affordability?
Higher rates increase the payment required for the same loan amount, which can reduce the home price supported by a fixed monthly housing budget. Lower rates generally increase buying power.
Does this calculator include property taxes?
Yes. Enter a property tax rate as an annual percentage of home value and it is added to your estimated monthly housing payment, kept separate from the loan balance.
Does it include homeowners insurance?
Yes. Enter your annual premium and it is divided by 12 and added to your estimated monthly housing payment.
Does it account for PMI?
Yes. PMI can be auto-estimated when your down payment is below 20%, set to a custom rate, or disabled. It is added to your housing payment and never included in the loan balance.
Is 20% down required?
No. Many loan programs allow lower down payments, though they may include mortgage insurance or other requirements. 20% is not a universal requirement.
Does this estimate mean I qualify for a mortgage?
No. This is an estimate based on your inputs and assumptions, not a pre-approval or lending offer. Actual qualification depends on lender requirements, credit, income verification, assets, and the property.
Why might a lender calculate affordability differently?
Lenders use different underwriting standards, loan programs, rate quotes, and documentation requirements. They may count different debts, use different ratios, and verify income and assets — so their figure can differ from this estimate.
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Mortgage Guides
Plain-language guides to help you understand the numbers behind your mortgage.
How Mortgage Payments Work
Read guideUnderstanding Mortgage Interest
How Down Payments Work
What Is PMI?
15-Year vs. 30-Year Mortgages
Understanding Closing Costs
MoneyMetric HQ calculators are provided for educational and informational purposes. Affordability estimates are not mortgage approvals, pre-approvals or lending offers. Actual qualification and loan terms depend on lender requirements, loan program, credit profile, income verification, assets, property information and other factors. Results may differ from lender calculations. MoneyMetric HQ does not provide personalized financial, investment, tax, legal or credit advice. See our Methodology, Financial Disclaimer, and Privacy Policy.