Home Affordability Calculator
Estimate a realistic home price range based on your income, debts, down payment, and monthly housing costs.
Affordability is more than a home price, it’s your monthly payment and how it fits with everything else you pay each month. Our calculator helps you estimate a comfortable range using common lending guidelines and the costs buyers often forget, like property taxes and insurance.
- • Estimate an affordable home price range
- • Include taxes, insurance, HOA, and mortgage insurance
- • See a target monthly payment budget
- • Test how rate changes affect affordability
Affordability Inputs
Estimated Affordability
This estimate uses conservative lending guidelines and is for planning only. Actual approval depends on credit, loan program, and lender requirements.
Next step: compare payments at real rates using our mortgage rate calculator on our homepage .
How to Use a Home Affordability Calculator (in 3 minutes)
The goal isn’t to chase the biggest loan you qualify for, it’s to find a monthly payment that fits your life even if something changes (rates, taxes, insurance, or income).
- Enter your income and monthly debts. This sets the foundation for what a lender might approve and what you can afford.
- Choose a down payment. A larger down payment can reduce the loan amount and sometimes eliminate mortgage insurance.
- Include taxes and insurance. These can add hundreds per month and change by location.
- Set a realistic interest rate. If you’re shopping, test a few rates to see how your price range shifts.
- Stress-test your budget. If the payment feels tight, lower the target price or reduce other debts.
Many buyers are surprised by escrow costs. If you’re unsure, start with a conservative estimate and update it once you know your property taxes and insurance quotes.
What “Affordable” Really Means (Beyond a Home Price)
A home’s price is only part of the story. What matters is your all-in monthly housing payment: principal and interest, property taxes, homeowners insurance, and sometimes HOA and mortgage insurance.
The costs most people underestimate
- Property taxes: can vary a lot by state, county, and neighborhood.
- Homeowners insurance: can rise with rebuilding costs and claim activity in your area.
- HOA dues: common in condos and many newer neighborhoods.
- Mortgage insurance: often required with smaller down payments (rules vary by loan type).
- Maintenance: roofs, HVAC, appliances, and surprise repairs; plan for them.
That’s why a “safe” budget often lands below a lender’s maximum approval. If you want more context on the terms used in quotes and loan estimates, start with Guide to Mortgage Basics.
How Interest Rates Change Your Buying Power
Interest rate changes don’t just affect your payment, they change the home price you can afford at the same monthly budget. When rates rise, the same payment buys less house. When rates fall, you may be able to afford more or keep the price the same and pay less each month.
- Pick a monthly payment you’re comfortable with.
- Test two or three interest rates you’re seeing from lenders.
- Keep taxes/insurance constant so the comparison is fair.
- Use the result as your shopping budget, not your max.
- Pay down monthly debts (car loans, cards, student loans)
- Increase down payment (even modestly)
- Improve credit to qualify for better pricing
- Consider a smaller loan amount or different term
Once you have a price range, use our mortgage rate calculator to model the monthly payment and total interest at different rates.
Affordability Calculator FAQs
What’s the difference between “approved for” and “comfortable with”?
Approval is based on lender guidelines and documented income/debts. Comfortable is personal, your savings goals, lifestyle, and how much margin you want each month. Many buyers choose a payment below their maximum approval.
Should I include bonuses or variable income?
For budgeting, it’s usually safer to base affordability on income you expect consistently. If bonuses are reliable, you can test both “base-only” and “base + bonus” scenarios to see the range.
Do taxes and insurance matter as much as the rate?
Often, yes. Taxes and insurance can be a large share of the monthly total, and they can change over time. That’s why an all-in affordability estimate is more useful than principal-and-interest alone.
How do I make this estimate more accurate?
Use realistic property tax and insurance numbers for your area, include HOA if relevant, and test a conservative interest rate. Then compare the monthly total against your take-home pay and savings targets.
What if rates change after I’m under contract?
Even small changes can move your monthly payment. If you haven’t locked, run the same scenario at a slightly higher rate to see whether you still feel comfortable.
Is this a loan quote?
No. This is a planning estimate. Your actual rate and approval depend on credit, loan program, property details, and lender pricing.
For a clear foundation on down payments, DTI, escrow, and how mortgage costs add up, read The Ultimate Guide to Mortgage Basics.