House affordability calculator guide
This calculator estimates a reasonable home price from income, debt payments, down payment, mortgage rate, and a target housing debt-to-income ratio. It is designed for quick planning before you run lender-specific numbers.
How to use it
- Enter gross annual household income and monthly debt payments.
- Add your available down payment and expected mortgage rate.
- Choose a target housing DTI that fits your risk tolerance.
- Use the annual cost percentage to include broad ownership costs such as insurance, maintenance, and property-related costs.
Calculation method
The calculator solves for the highest home price where the mortgage payment plus estimated non-mortgage ownership costs stays near the target payment.
Example scenario
With $90,000 of annual income, $70,000 down, a 6.5% mortgage rate, and a 28% housing target, the calculator estimates a purchase range that keeps monthly housing costs in a manageable zone.
What to watch
This is not a lender approval calculator. It does not include credit score, local underwriting rules, exact property taxes, mortgage insurance, or closing costs.
How to use this calculator
- Enter realistic values that match your current situation.
- Press Calculate to refresh the estimate.
- Compare the main result with the supporting details in the result panel.
- Change one input at a time to see which variable affects the result most.
FAQ
What DTI should I use?
A lower DTI gives more cash-flow safety. Many people use 25% to 30% for housing as a planning range.
Why include a buffer?
A buffer accounts for repairs, income changes, and the difference between a theoretical payment and a payment that feels comfortable.
Is the aggressive range safe?
Not necessarily. It is a stress-test reference, not a recommendation.