Financial Calculators
Mortgage Affordability Calculator
Estimate a planning-level home price and monthly housing budget from gross income, existing debts, down payment, mortgage terms and housing-cost assumptions.
Estimate home affordability
Mortgage Affordability Calculator
Estimate an affordable home price based on the assumptions entered. This is not a lender approval or pre-approval.
Income, debt, and home costs
Affordability estimate
- Estimated Loan Amount
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- Down Payment Used
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- Cash Including Closing Costs
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- Maximum Monthly Housing Budget
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- Principal & Interest
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- Property Tax
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- Insurance
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- HOA
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- PMI
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- Estimated Front-End Ratio
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- Estimated Back-End DTI
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- Binding Constraint
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Planning estimate only. Taxes, insurance, PMI, HOA costs, rates, lender standards, and qualification requirements may differ.
Your calculation is processed in your browser and is not stored by this tool.
Results are estimates based on the values entered. They do not represent loan approval, a lender offer or financial advice.
How to use the mortgage affordability calculator
- 1
Enter gross annual household income and recurring monthly debt payments.
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Add the down payment and estimated closing costs.
- 3
Enter the mortgage rate and loan term.
- 4
Include property tax, home insurance, HOA fees and PMI assumptions.
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Review the estimated home price, loan amount, cash required and limiting debt-to-income ratio.
How affordability is estimated
The calculator starts with gross monthly income. The front-end ratio limits housing costs, while the back-end debt-to-income ratio limits housing plus existing monthly debts. It uses the smaller available budget, subtracts fixed housing costs, and estimates the loan amount supported by principal, interest, tax and PMI assumptions.
Mortgage affordability example
With $120,000 annual income, $500 in monthly debt, a $50,000 down payment, a 6.5% 30-year mortgage, 1.2% property tax, $1,800 annual insurance and 28%/36% ratios, the estimated affordable home price is about $405,158. The modeled housing budget is $2,800 per month and cash required is $57,000 when $7,000 closing costs are included.
Income, debts and DTI assumptions
A mortgage affordability calculator based on income is only as useful as its debt inputs. Include required car, student, personal-loan, credit-card and other recurring payments. The editable front and back ratios are planning assumptions, not universal lending rules. Actual limits depend on the lender, jurisdiction, credit profile, property and loan program.
Costs beyond principal and interest
Property tax, insurance, HOA charges and private mortgage insurance can materially reduce the loan supported by the same monthly budget. Closing costs affect cash required but are not treated as monthly housing expenses. Maintenance, utilities, moving costs and future repairs are outside this calculation and should be budgeted separately.
Important limitations
- No approval: the result does not confirm eligibility or pre-qualification.
- Gross income: affordability is not the same as comfort after tax and living expenses.
- Rates and costs: lender terms, taxes, insurance and PMI can change.
- Property rules: local lending requirements are not applied automatically.
- Budget buffer: consider maintenance and emergency savings before choosing a price.
Related tools
Mortgage Affordability Calculator FAQ
How much mortgage can I afford based on income?
The calculator applies editable front-end and back-end ratios to gross monthly income and entered debts.
What debts should I include?
Include required recurring payments such as car, student, personal-loan and credit-card obligations.
Does the result include property tax and insurance?
Yes, when you enter those assumptions, along with optional HOA and PMI amounts.
Is the down payment included in the home price?
Yes. The estimated price combines the supported loan amount and the available down payment.
Does this guarantee mortgage approval?
No. It is a planning estimate and lenders use additional eligibility and underwriting rules.
Why is my lender result different?
A lender may use different income, debt, rate, tax, insurance, credit and program assumptions.
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