Mortgage Affordability Calculator
Estimate how much home you may be able to afford based on your income, monthly debts, down payment, interest rate, loan term, and estimated housing costs.
How much home can I afford?
Select your currency and enter your financial information. The calculator uses your target debt-to-income ratio to estimate an affordable monthly housing payment and home price.
Estimated affordable home price
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| Gross monthly income | — |
| Monthly debt payments | — |
| Target DTI | — |
| Interest rate | — |
| Loan term | — |
| Monthly property tax | — |
| Monthly homeowners insurance | — |
Step-by-step calculation
What is mortgage affordability?
Mortgage affordability is an estimate of how much housing a household may be able to support based on income, existing debt, mortgage terms, and housing expenses.
Affordability is different from loan approval. A lender may also consider credit history, employment, assets, reserves, loan type, property characteristics, and other underwriting factors.
What is debt-to-income ratio?
Debt-to-income ratio, or DTI, compares monthly debt obligations with gross monthly income.
How does the mortgage affordability calculator work?
The calculator first estimates the maximum total monthly debt based on the income and target DTI entered. Existing monthly debt is then subtracted.
Estimated monthly property tax and homeowners insurance are deducted from the remaining housing budget. The remaining amount is treated as the available principal-and-interest mortgage payment.
The calculator then converts that payment into an estimated mortgage amount using the selected interest rate and loan term, and adds the down payment to estimate an affordable home price.
Mortgage affordability example
Suppose a household earns 8,000 units of the selected currency per month and has 1,000 units of existing monthly debt. Using a 36% target DTI:
2,880 − 1,000 = 1,880
If property tax and insurance total 300 per month:
1,880 − 300 = 1,580
Available principal-and-interest budget:
1,580 per month
The calculator then uses the selected interest rate and loan term to estimate the mortgage amount supported by that payment.
Factors that can affect affordability
Actual affordability may differ because of credit score, interest rate, loan program, mortgage insurance, closing costs, property taxes, insurance, association fees, income stability, reserves, and lender-specific requirements.
A financially comfortable home price may also be lower than the maximum amount a lender may approve.
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Important: This calculator is provided for general informational and educational purposes only and does not constitute financial, mortgage, tax, legal, or investment advice. Results are estimates based on the information entered and the assumptions selected. Actual lender qualification, mortgage rates, loan terms, taxes, insurance, fees, and affordable home prices may differ. Always verify important financial information with a qualified professional or your lender before making financial decisions.