Home Affordability Calculator

Worked example

Example: raising down payment from 5% to 15% increases affordable price and lowers PMI exposure in many scenarios.

When to use this

• Annual budget planning.
• Deciding how much to save for down payment.
• Co-buyer alignment on price range.

Common examples

• $90,000 income, $600/mo debts, 7% down payment, and a $2,200 target payment → estimate a home price range before touring listings.
• $140,000 household income with $1,200/mo debts → compare a 30-year vs 15-year payment budget using the same down payment.
• First-time buyer with $45,000 saved → see how down payment size changes a comfortable price range at the same interest rate.

Common mistakes

• Maxing DTI without emergency fund.
• Assuming lowest advertised rates without credit tier.
• Forgetting closing costs beyond down payment.

How it works

Estimates an affordable home price from gross income, a housing-ratio guideline, monthly debts, down payment ($ or %), interest rate, term, and optional tax, insurance, HOA, and PMI costs. When down payment is under 20%, optional PMI (annual % of loan) reduces the P&I budget. Property tax can be entered as a fixed annual amount or as a percent of home value. Results are planning estimates, not lender approvals.

Limitations

Affordability rules vary by lender and program. Property tax, insurance, and HOA are estimates you provide.

Privacy and file handling

Your data stays on your device and is not uploaded.

Formula or method

Affordable housing payment is limited by income × housing ratio minus existing monthly debts. Home price backs out down payment from the loan amount the remaining P&I budget can support after tax, insurance, HOA, and optional PMI.

Important notice

Results are estimates for educational purposes and are not financial advice. Lender guidelines, taxes, insurance, PMI, and local costs vary. Consult a qualified financial professional for personal guidance.