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Mortgage Affordability Calculator

Calculate the maximum house price you can afford based on your income and expenses.

Mortgage Affordability Calculator

What is Mortgage Affordability Calculator?

A mortgage affordability calculator determines how much house you can afford to buy based on your income, monthly expenses, down payment, interest rates, and lender qualification rules. Calculates maximum purchase price, required monthly payment, debt-to-income ratios (typically max 43% for conventional loans), and shows whether you qualify for conventional, FHA, VA, or USDA loans. Accounts for principal, interest, property taxes, homeowners insurance, HOA fees, and mortgage insurance (PMI) when applicable. Essential for first-time homebuyers, those upgrading homes, and anyone wanting to know realistic purchase limits before house hunting.

Key Benefits & Use Cases

Avoid wasting time viewing homes you cannot afford by knowing your realistic price range upfront based on your income and debts. Prevent financial stress from over-leveraging—many buyers qualify for more than they should comfortably spend, leading to payment struggles. Understand exactly what monthly payment to expect including all costs (PITI + PMI + HOA) rather than just principal and interest. Compare how different down payment amounts affect affordability—20% down eliminates PMI, saving hundreds monthly. Plan strategic debt paydown if your debt-to-income ratio is too high for your target home price. Used by homebuyers, real estate agents, and mortgage brokers to set realistic expectations before beginning the home search process.

How to Use This Calculator

Enter your gross annual income (before taxes), monthly debt obligations (car loans, student loans, credit cards), down payment amount available, desired loan term (typically 30 years), and current mortgage interest rates (check Bankrate or your lender). The calculator computes your maximum affordable home price based on standard 43% debt-to-income ratio, estimates monthly payment including taxes and insurance (typically 1-1.5% annually), and shows if PMI applies (less than 20% down). Adjust down payment to see how it affects affordability—every $10K down payment increases buying power. Consider keeping payments under 28% of gross income for comfortable housing costs. Results help you set home search filters and budget appropriately.

Frequently Asked Questions

Common questions about mortgage affordability calculator

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