Mortgage Affordability Calculator
Estimate a realistic home price based on income, monthly debts, and a target DTI rule. This is the high-level “can I afford it?” view — different from a mortgage payment calculator.
Mortgage affordability definition (snippet-ready)
Mortgage affordability estimates the home price you can reasonably afford based on income, debts, down payment, and total monthly housing costs (PITI + HOA).
Unlike “mortgage payment”, affordability works backward from a budget (often DTI-based) to a price estimate.
Affordability vs payment — what’s the difference?
- Affordability estimates your max price based on income/debt (this page).
- Mortgage payment calculates monthly payment for a specific loan amount (use Mortgage Calculator).
Rule-of-thumb ranges (table)
| Metric | Common rule of thumb | What it means |
|---|---|---|
| Housing ratio (front-end) | ≈ 25%–30% of gross income | Housing costs as share of gross income. |
| Total DTI (back-end) | ≈ 35%–43%+ | All debt payments as share of gross income. |
| Down payment | 3%–20%+ | Affects loan amount and monthly payment. |
| Taxes/insurance/HOA | Location-dependent | Often the difference between “looks affordable” vs “is affordable”. |
Related calculators
- Check your ratio first: DTI Calculator
- Plan your down payment timeline: Savings Goal Calculator
- Loan payment details: Loan Calculator
- Mortgage payment for a specific scenario: Mortgage Calculator
- Compare renting vs buying: Rent vs Buy Calculator
Ciekawostka: the hidden affordability killers
Two people can have the same income and the same “home price”, but wildly different affordability because of:
- Property taxes (often scale with price and vary dramatically by location)
- HOA fees (a fixed monthly cost that reduces the mortgage budget dollar-for-dollar)
- Insurance (can spike in some regions and materially change the monthly payment)
That’s why this calculator models PITI/HOA explicitly instead of using a “home price × multiplier” rule.
Common mistakes (and how to avoid them)
- Ignoring taxes/insurance/HOA: these costs reduce the mortgage budget dollar-for-dollar and often explain “why the bank says no”.
- Assuming down payment is the only cash needed: you may also need closing costs and reserves (and sometimes a buffer for repairs).
- Over-optimizing DTI: even if you can “afford” it by DTI, cash flow can still feel tight. Validate with a full monthly budget.
- Not stress-testing the rate: try +1% rate sensitivity (shown in Smart insights) to see how fragile the plan is.
How we maintain accuracy (methodology)
We keep assumptions transparent and update practices documented. See Editorial Policy & Methodology.
Frequently Asked Questions
Q:How much house can I afford?
Enter income, debts, down payment, interest rate, and costs (taxes/insurance/HOA). The calculator estimates a max home price using a DTI-based approach.
Q:What is PITI?
PITI stands for Principal, Interest, Taxes, and Insurance — common components of a monthly housing payment.
Q:What DTI rule should I use?
A common baseline is 28/36 (housing/total). If you want a safer plan, use a lower housing % or lower total DTI.
Q:Does this include property tax and insurance?
Yes — you can enter a property tax rate and an annual insurance estimate; both reduce the budget available for principal and interest.
Q:What about HOA fees?
HOA is included as a monthly cost. It directly reduces what you can afford for the mortgage itself.
Q:Is the result a guarantee I’ll be approved?
No. Lenders also consider credit score, reserves, employment history, and program rules.
Q:How does interest rate affect affordability?
Higher rates reduce the loan amount you can support with the same monthly budget, lowering the affordable home price.
Q:Does a bigger down payment increase affordability?
Often yes, because it reduces the loan amount needed and can also reduce monthly payment. But it also uses cash you might need for reserves.
Q:Should I include maintenance costs?
This calculator doesn’t model maintenance/repairs. Consider keeping a separate monthly buffer when you plan your real budget.
Q:Can I use this for any country?
Yes as a planning tool. The math is general, but local tax, insurance, and lending rules differ.
Q:Why does property tax reduce affordability so much?
Because it’s a recurring monthly cost that scales with home price. Every extra $1 of monthly tax reduces the mortgage budget by $1.
Q:Is a 15-year mortgage always less affordable than 30-year?
Monthly payments are typically higher for 15-year terms, so affordability can be lower — but total interest can be much lower. Use both scenarios to compare.
Q:Does this include PMI (mortgage insurance)?
Not explicitly. PMI varies by program, credit, and down payment. For conservative planning, reduce your max housing budget or increase ‘other debts’ to simulate PMI.
Q:How do I estimate a property tax rate?
Look up typical rates for your city/county or check local property tax listings. If unsure, run a range (e.g., 0.8% to 2.0%) and compare affordability sensitivity.