Income and DTI
Gross monthly income is multiplied by the selected DTI target to estimate the maximum amount of monthly debt allowed under the calculator's planning assumptions.
Home Affordability Calculator
Home Affordability
Adjust the values below to estimate your affordable home price. Drag the sliders or enter an exact amount.
$20K $2M
$0 $30K
Car, student loan, credit card, and other recurring debt.
$0 $2M
0% 12%
0% 5%
$0 $30K
$0 $5K
0% 2%
Applied when modeled down payment is below 20%.
1% 70%
Planning assumption: DTI is used to estimate a monthly housing budget. Actual mortgage qualification depends on the lender, loan program, borrower profile, credit, property costs, and underwriting requirements.
Estimated Home Affordability
Your estimated purchase price and monthly housing budget update instantly as you adjust the assumptions.
Estimated Affordable Home Price
$0.00
Estimated Loan Amount
$0.00
Monthly Housing Payment
$0.00
Available Housing Budget
$0.00
Monthly Debt + Housing
$0.00
Estimated Total DTI
Existing monthly debt plus estimated housing costs.
Existing monthly debt plus estimated housing costs.
0.0%
The current assumptions do not produce an affordable home price within the selected DTI target.
Monthly Housing Cost Breakdown
Mortgage Rate vs. Home Affordability
Current rate: 6.50%
The curve keeps your other calculator assumptions unchanged and shows how estimated affordability changes as the mortgage rate moves.
Results are estimates for budgeting and educational purposes and are not a mortgage approval, rate quote, or lending offer.
Interest Rate Scenario Comparison
Compare affordability at a lower, current, and higher mortgage rate while keeping your other assumptions unchanged.
| Scenario | Rate | Home Price | Loan Amount | Monthly P&I | Total Housing |
|---|
How This Home Affordability Calculator Works
The estimate combines your income, debt, down payment, mortgage rate, recurring housing costs, and target DTI into one monthly affordability model.
Mortgage Payment
Principal and interest are calculated from the estimated mortgage balance, mortgage rate, and loan term. A 0% rate is handled separately so the calculation remains mathematically valid.
Taxes and Insurance
Property tax is estimated from the home price and annual tax rate. Annual homeowners insurance is converted into a monthly cost.
PMI and HOA
Estimated PMI is included when the modeled down payment is below 20%. HOA fees are added as a monthly housing expense when entered.
Home Affordability Calculator FAQ
How much house can I afford?
Home affordability depends on income, existing debt, down payment, mortgage rate, loan term, property taxes, insurance, HOA fees, mortgage insurance, and the DTI assumption used for planning. This calculator combines those inputs to estimate a purchase price.
Does a larger down payment increase affordability?
A larger down payment reduces the amount that needs to be financed. It can lower the mortgage payment and may reduce or eliminate estimated PMI when the modeled down payment reaches 20%.
How does the mortgage rate affect home affordability?
With income, debt, and other assumptions unchanged, a higher mortgage rate generally increases the payment required for a given loan amount. That can reduce the home price that fits within the selected housing budget.
What is a good DTI for a mortgage?
DTI requirements vary by lender, loan program, borrower profile, and underwriting factors. The DTI setting in this calculator is a planning assumption and not a universal mortgage approval limit.
Does this calculator guarantee mortgage approval?
No. This tool provides an estimate for budgeting and educational purposes. Actual mortgage approval depends on the lender, loan program, credit, documentation, property, reserves, loan limits, and underwriting.