Home Affordability Calculator

Calculate a realistic budget for your next home purchase using trusted ratios and local costs See how income debt and rates shape price payment taxes insurance PMI and HOA Compare scenarios and export results easily Get actionable guidance with clear charts instant recalculation mobile friendly layout helpful tips and FAQs for confident planning today

Borrower Profile
Used to compute monthly income and debt-to-income ratios.
Loan & Purchase
Policy Assumptions
Max housing as % of monthly income.
Max total debt (housing+other debts) as % of monthly income.
Local Costs
Only applied if down payment < 20%.
Affordability Result
Max Home Price
$—
Loan Amount
$—
Housing Payment
$—/mo
Binding rule: — Down payment share: —
Monthly payment breakdown
Component Amount (USD / mo)
Example Scenarios

Rates +/- 1.0% around your input, keeping other inputs constant.

# APR (%) Max Price Loan Housing $/mo Binding
Formula used
  • Monthly income: GMI = AnnualIncome / 12
  • Ratio limits: Front-end limit H ≤ FE * GMI. Back-end limit H + OtherDebts ≤ BE * GMI. We use the tighter of the two.
  • Payment pieces: H = PI + Tax + Ins + PMI + HOA where
    • PI is principal & interest on Loan = Price − DownPayment
    • Tax = Price * (taxRate/100) / 12
    • Ins = Price * (insRate/100) / 12
    • PMI = Loan * (pmiRate/100) / 12 if down payment < 20%; otherwise zero
    • HOA is entered monthly
  • Mortgage payment: with monthly rate r = APR/12, months n = years*12, PI = r*Loan / (1 - (1+r)^(-n)).
  • Solver: We find the Price that makes H equal to the housing limit using a monotonic binary search.

These are planning estimates. Actual underwriting varies by lender, program, and location.

How to use this calculator
  1. Enter your income, existing monthly debts, and expected down payment.
  2. Choose a loan term and interest rate. Adjust front-end and back-end ratios if your program differs.
  3. Enter local cost assumptions for property taxes, homeowners insurance, PMI, and HOA.
  4. Press Calculate. Review the maximum price, monthly breakdown, and which rule is binding.
  5. Use the example scenarios table to see the impact of rate changes. Export your results as CSV or PDF.
  • Front-end is often around 28%; back-end around 36–43% depending on program.
  • Lower rate or higher down payment increases the maximum price.
  • Higher taxes or HOA reduces what you can afford.
Frequently Asked Questions
Front-end caps the housing payment as a share of income. Back-end caps total debt including housing plus other obligations. Lenders qualify using the tighter of the two.
They vary by location and home type. Use local averages or specific quotes for better accuracy. Small changes in these inputs can meaningfully change the maximum price.
PMI is estimated when the down payment is below 20% of the price. Many programs remove PMI once you reach 20% equity, but policies differ—confirm with your lender.
Underwriting also considers credit score, reserves, income stability, property type, and program rules. This tool focuses on debt-to-income and common carrying costs.
Yes—adjust the ratios until the housing payment matches your target. You can also tweak taxes, insurance, or HOA to reflect different neighborhoods or property types.
If other debts exceed the back-end limit, the model shows no available housing budget. Reducing debts, increasing income, or choosing a less expensive home can help.

Related Calculators

Biweekly MortgageCap RateFHA LoanHome MortgageHome Value (US)Mortgage AmortizationMortgage (Taxes & Insurance)Mortgage PayoffMortgage PointsMortgage Prepayment

Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.