Home affordability calculator
A purchase price from your income, debts, down payment, and a mortgage rate.
Gross pay in a typical month.
Car, student loans, and credit cards. Leave the new mortgage out.
The yearly rate on a fixed mortgage.
A monthly estimate. Zero shows principal and interest only.
Home price to shop
$387,496.40
The housing budget is $2,520.00 a month, 28% of gross income.
- Housing budget
- $2,520.00
- Principal and interest
- $2,070.00
- Loan amount
- $327,496.40
- Down payment
- $60,000.00
The mortgage fits. Does your cash flow?
Forecast a full year of mortgage, bills, and paydays side by side.
Start free 14-day trialHow this number is calculated
Two screens, both on gross monthly income. A common guideline keeps the housing payment at or under 28% of that income. A common lending screen keeps housing plus other monthly debts at or under 36%. The housing budget is the lower of the two.
Property tax and insurance are subtracted from that budget. What remains is the principal and interest payment. That payment, at the rate and term you enter, is turned back into a loan amount. The home price is the loan plus your down payment. This is not a preapproval.
Common questions
Why 28% and 36%?
They are common lending screens, not a promise from a lender. 28% of gross income is a ceiling often used for the housing payment. 36% is a ceiling for that payment plus your other monthly debts.
What should I enter for taxes and insurance?
A monthly estimate for property tax and homeowners insurance in the area you are shopping. Leaving this at zero shows a price based on principal and interest only, which is higher than the house the full payment would support.
Does the down payment change the monthly payment?
The monthly housing budget comes from your income and debts. A larger down payment does not change that budget. It raises the price you can reach, because less of the price has to be borrowed.
Other calculators
This is an estimate for planning, not financial, tax, or lending advice. Nothing you type is saved. Ampluent forecasts the cash in a household day by day from paychecks, bills, and cards. See Ampluent