Home Affordability Calculator
Find out how much home you may be able to afford based on your income, monthly debts, down payment, and current interest rates.
How Lenders Decide What You Can Afford
Lenders look at your debt-to-income ratio: your total monthly debt payments, including the new housing payment, divided by your gross monthly income. Many loan programs allow a ratio of around 43% to 45%, and some go higher with strong credit or savings.
Enter your income, your monthly debts such as car loans, student loans, and credit card minimums, and the cash you have for a down payment. The calculator works backward from the payment you can carry to a purchase price. What a lender will approve and what feels comfortable are not always the same, so it is worth testing a lower payment too.
Example: With household income of $150,000 a year ($12,500 a month) and $600 in monthly debts, a 43% ratio allows total debts of $5,375. That leaves about $4,775 for the full housing payment, including taxes and insurance.
Common Questions
What debts count toward my debt-to-income ratio?
Loans and credit lines that appear on your credit report, plus obligations such as child support. Utilities, groceries, and insurance premiums other than homeowners insurance are not counted.
Does my credit score affect how much I can afford?
Yes. A higher score usually means a lower rate and lower mortgage insurance, which increases the price you can afford at the same payment.
How much should I put down?
It depends on the loan. VA loans require nothing down for eligible borrowers, FHA requires 3.5%, and conventional loans start at 3% for first-time buyers. Putting down 20% avoids mortgage insurance on conventional loans.