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Mortgage affordability calculator: how much house can I afford?
Work backward from your income. Enter what you earn, what you already owe each month and what you can put down, and see the price range a lender is likely to approve.
We solve for the highest price whose full payment, property tax, insurance and PMI included, lands on your number. Lenders also check your income and debts; this is the payment side only.
All figures are estimates for planning only. Property tax is estimated at 1.15% and home insurance at 0.30% of the home’s value per year; HOA dues and mortgage insurance are also estimates. Actual figures vary by property, coverage and lender. Enter your own figures where you know them. Not a quote or a commitment to lend.
How lenders size your budget
Lenders look at your debt-to-income ratio: every monthly debt payment, including the new house payment with taxes and insurance, divided by your gross monthly income. This calculator takes the ratio you pick, subtracts the debts you already carry and HOA dues, and finds the highest price whose full payment fits in what is left.
The ratio you choose matters more than anything else on the page. A 43% limit is a common approval point. Some conventional and FHA approvals reach 50% with excellent credit and savings left over after closing, but a payment at the top of the range leaves little room for everything else. Many buyers aim lower on purpose.
Ways to raise your price range
- Pay down a debt. Eliminating a $400 car payment can raise your range by tens of thousands of dollars.
- Put more down. Reaching 20% removes PMI on a conventional loan.
- Look at the loan type. FHA allows higher ratios, and VA needs no down payment for eligible borrowers.
- Self-employed? A bank statement loan can count income that tax returns write off.
Next step: check what your payment looks like at today’s real rates with the live pricer, or see the full breakdown on the mortgage payment calculator.
Questions people ask
What debt-to-income ratio do lenders use?
Conventional loans generally top out around 45% to 50% of gross monthly income for all debts, including the new housing payment, with strong credit and reserves. FHA can go higher in some cases. A ratio near 36% leaves more breathing room in your budget.
What counts as monthly debt?
Minimum payments that show on your credit report: car loans, student loans, credit cards, personal loans, plus child support or alimony. Utilities, phone bills and insurance other than the home policy do not count.
Does affordability change by county?
Yes. Property tax rates and insurance premiums vary, and so do loan limits. A higher price may also push you into a jumbo loan, which has its own down payment and reserve rules.
Is a pre-approval the same as this estimate?
No. This is a planning number. A pre-approval reviews your actual income, assets and credit and gives you a letter sellers will take seriously. Start one here.