Home Affordability Calculator
Estimate a purchase price using a 28/36 debt-to-income budget. Enter your income, down payment and other debt to see the price and monthly payment that fit.
With $150,000 annual income, $500 monthly debt and $60,000 down, the model estimates a price of $483,756 and a $3,500 monthly payment.
Estimate what you can afford
Household income
$Down payment
$Other monthly debt
$Home price you can afford
$517,148Monthly payment
$3,500Down payment
19.3%Debt-to-income
32%Purchase prices under the model
| Household income | Price at 6% | Price at 6.5% | Payment at 6.5% | Price at 7% |
|---|---|---|---|---|
| $75,000 | $250,773 | $241,878 | $1,750 | $233,498 |
| $100,000 | $334,364 | $322,504 | $2,333 | $311,331 |
| $150,000 | $501,546 | $483,756 | $3,500 | $466,996 |
| $200,000 | $668,729 | $645,008 | $4,667 | $622,662 |
Turn a loan estimate into a household budget
The tool starts with two monthly allowances:
- 28% of gross income
- 36% minus other debt payments
It uses the smaller amount for housing, then solves for a price whose mortgage, tax, insurance and dues fit. From there:
- Check the modeled payment against take-home pay after saving, childcare, and other expenses.
- Get local estimates for property tax, insurance, repairs, and closing costs.
- Keep a cash reserve after the down payment.
Meeting a debt ratio does not mean the payment fits your life.
Frequently asked questions
It budgets up to 28% of gross income for housing and up to 36% for housing plus other debt payments. The lower allowance determines this estimate. These are budgeting assumptions, not universal lender limits.
Mortgage principal and interest, property tax, home insurance, HOA dues and modeled private mortgage insurance. Maintenance and utilities are additional expenses.
Some loans allow less. This tool adds a 0.5% annual PMI assumption below 20% down, but actual premiums and cancellation requirements depend on the loan. Other loan programs have different insurance rules.
Check the payment against take-home pay after taxes, saving, childcare and other expenses. A price that fits these ratios may still leave too little cash for your priorities.
It uses 28/36 debt-to-income limits and a 30-year mortgage at 6.5%, with 1.1% property tax, 0.5% home insurance, no HOA dues, and 0.5% PMI on the loan below 20% down. It is a budget estimate, not a lending decision, and real loan rules and costs vary. It leaves out maintenance, closing costs, utilities and cash reserves.