Mortgage Affordability Calculator
Build a housing budget that includes debt payments and the costs of owning the home.
Your details
Advanced assumptions
These are scenario assumptions, not verified local rules or lender terms. Only change options supported by your documents.
Your results
The 28% housing and 36% debt defaults are adjustable planning assumptions, not approval rules. Enter mortgage insurance if applicable. Tax and insurance estimates must be updated for the property. Use Advanced to allocate closing costs, maintenance, utilities, and cash reserves.
Calculated:
Scenario comparison
Capture up to three alternatives, then change inputs to explore another. Snapshots stay in this page only and disappear on reload. Open a schedule before printing to include its table.
How the mortgage affordability calculator works
Estimate a home price ceiling from income, debts, down payment, interest rate, taxes, insurance, and adjustable budget limits.
Housing budget = the smaller of income × housing limit and income × total debt limit − other debt payments. Subtract taxes, insurance, and HOA dues, then convert the remaining payment into loan principal.
Example
At $8,000 gross monthly income, a chosen 28% housing limit starts at $2,240 before applying the total-debt constraint.
What affects the result
- The 28% and 36% defaults are adjustable assumptions, not universal lending rules.
- Property taxes, home insurance, HOA dues, and mortgage insurance reduce the mortgage-payment budget.
- Cash for closing, moving, maintenance, and reserves is separate from the down payment.
Helpful guides
Frequently asked questions
Does this calculate PMI automatically?
No. Enter a monthly mortgage-insurance estimate when your loan requires it. The amount depends on the lender, loan, and borrower.
Should I use gross or take-home income?
This model uses gross monthly income for ratio calculations. Check the resulting payment against your actual take-home budget before deciding what is comfortable.