Mortgage Affordability Calculator
Find out how much home you can afford based on your income, debts, and down payment.
Income & Debt
Loan Details
Calculator guide
Mortgage Affordability Calculator
Estimate a home price from annual gross income, monthly debt payments, down payment, interest rate, and loan term. This calculator uses a simple affordability rule to derive a maximum monthly payment and an estimated loan amount and home price.
How to use the calculator
- 1Enter annual income before taxes, current monthly debt payments, and the down payment available.
- 2Enter the annual mortgage rate and the term in years.
- 3Calculate the estimated home price and payment, then compare it with a full budget including taxes, insurance, and maintenance.
Important details to understand
1.Start with the right inputs
Check every number, date, unit, and selected mode before calculating. A correct formula can still give a misleading answer when an input is missing, entered in the wrong unit, or based on a different time period.
2.Know what the calculation includes
The method below describes what this tool uses. Real situations can involve extra rules, costs, calendar conventions, or personal details that are not part of the form, so compare the assumptions with your actual question.
3.Read the unit and rounding
Look at the label as well as the displayed number. Rounding can change the last digits, and results in different units or time periods are not directly comparable until you convert them consistently.
4.Treat the result as a useful check
Use the output to understand a calculation, explore a scenario, or make an initial estimate. When a result affects a formal deadline, a health decision, a contract, or a large payment, confirm it with the relevant source or qualified professional.
How the calculation works
The page converts gross annual income into a monthly figure and passes it with monthly debt, down payment, rate, and term to an affordability calculation based on a 28/36-style rule. It estimates a payment allowance, converts that payment to a loan amount using amortization, then adds down payment to estimate a home price.
A worked example
A household with $72,000 gross annual income has $6,000 monthly gross income. The rule-based estimate is a starting point only; debts and the entered rate and term affect the result.
When this calculator is useful
Explore an initial price range or see how the down payment, debts, and loan assumptions shift a theoretical home budget.
Planning ahead
Try a few realistic input values to see how a change in an amount, measurement, date, or rate affects the answer.
Learning the method
Follow the explanation and example to understand which inputs matter and how they are combined.
Checking your own work
Compare the result with a hand calculation, a worksheet, or a trusted source when you need an independent sense check.
Explaining a result
Keep the original inputs and units with the output so another person can understand what was calculated.
Tips for a more reliable answer
- Enter the values from the same source and keep units consistent throughout the calculation.
- Check that you selected the mode or option that matches the question you are trying to answer.
- Use the worked example to confirm you understand the inputs and the kind of result the tool returns.
- Save the inputs with the result so you can review or repeat the calculation later.
Limitations and assumptions
The rule is a simplified guideline and not a lender decision. Taxes, homeowner insurance, association dues, maintenance, closing costs, credit, location, and household expenses can materially change affordability. Do not treat the maximum as a recommended budget.
Every result depends on the information entered and the method described above. The calculator cannot confirm that the inputs are complete or that its assumptions match a particular provider, policy, location, body, or real-world situation.
Frequently asked questions
What is the 28/36 rule?
It is a common budgeting guideline comparing housing and total debt costs with gross income; lenders may use different tests.
Does the result include property tax and insurance?
The listed inputs do not include those costs in the affordability model, so add them when planning a budget.
Does this mean a lender will approve that amount?
No. Qualification depends on lender underwriting and complete financial information.
Why might my result differ from another calculator?
Tools can use different assumptions, units, date conventions, included costs, or rounding rules. Compare the inputs and method descriptions before deciding that one result is wrong.
What should I check if the answer looks wrong?
Review the selected mode, each entered value, the units, and any optional fields. Then compare a simple example with the method described in this guide.
Can I rely on the result for an official or high-impact decision?
Use the result as an estimate or explanation and check the limitations listed for this tool. Confirm important decisions with the relevant official source or a qualified professional.