Home Affordability Calculator

Buying a home starts with understanding what fits your budget.

Our Home Affordability Calculator helps you estimate how much home you can buy based on your income, debts, and financial goals — so you can shop with confidence and clarity.

Benefits

• Get an instant estimate of how much home you can afford
• Set a smart budget before meeting with a lender or realtor
• See how different down payments or loan terms affect affordability
• Shop for homes with confidence knowing your limits

Formula

Most lenders use the 28/36 rule to estimate affordability:

• Your monthly housing costs (mortgage, taxes, insurance) should be no more than 28% of your gross monthly income.
• Your total monthly debt payments (including credit cards, auto loans, etc.) should stay below 36% of your gross income.

Our calculator uses these ratios to estimate what you can afford based on your income and debts.

Terms

• Gross Income: Your total income before taxes and deductions.
• Debt-to-Income Ratio (DTI): The percentage of your income that goes toward monthly debt payments.
• Down Payment: The amount of money you put toward your home upfront.
• Interest Rate: The annual cost of borrowing money.
• Loan Term: The number of years you’ll take to repay your mortgage (typically 15 or 30).

Factors to Consider

• Property taxes and homeowner’s insurance can vary by location and affect affordability.
• A larger down payment reduces your monthly cost and may eliminate mortgage insurance.
• Your credit score and loan type (FHA, VA, or Conventional) can impact how much you qualify for.
• Don’t forget to budget for maintenance, utilities, and other homeownership costs.