AmortCalc

Planning tool

Home Affordability Calculator

Estimate a home-price budget from your income, monthly debts, down payment, mortgage terms, and other housing costs. This is a planning estimate, not a lender approval.

Prefilled figures are examples. Replace them with your own income, expenses, and expected lender rate.

Taxes, insurance, PMI, and HOA dues are user-entered estimates. They are not part of financed principal. Add closing costs, maintenance, utilities, and savings needs to your own budget.

How the estimate becomes a price range

The tool creates two monthly limits from gross income: the housing-cost limit and the total-debt limit after existing debt payments. It uses the lower limit, subtracts the monthly estimates for tax, homeowners insurance, PMI, and HOA, and treats the remainder as the principal-and-interest allowance. That allowance is converted to a loan amount using the selected rate and term. The down payment is then added to produce an estimated purchase price.

The default 28% and 36% figures are editable planning assumptions—not approval rules or a lender decision. A lender can use different underwriting standards, qualifying income, debt calculations, loan limits, and property requirements.

Worked example using the prefilled inputs

With $9,000 gross monthly income, $700 existing monthly debt, a $60,000 down payment, a 6.5% assumed rate, and a 30-year term, the 28% housing limit is $2,520. The 36% total-debt limit leaves $2,540 for housing. The lower limit applies.

The entered annual tax ($4,800) and insurance ($1,800), plus $100 monthly PMI, use $650 of that allowance. The remaining $1,870 supports about $295,854 in principal under monthly APR ÷ 12 assumptions. Adding the $60,000 down payment gives an estimated price near $355,854. This example does not subtract closing costs from the down payment or account for a cash reserve.

Costs to add to your personal budget

This estimate includes only the costs entered in the form. Budget separately for closing and moving costs, utilities, maintenance, repairs, emergency savings, and any insurance not entered. Property tax, insurance, and HOA charges can change; get property-specific estimates and leave room for uncertainty. The down-payment field should reflect cash you can actually use after keeping money for those other needs.

The CFPB home-budget guide discusses taxes, insurance, maintenance, utilities, closing costs, and savings. Use lender Loan Estimates to compare actual offers; this page is only a budgeting exercise.

Frequently asked questions

How much house can I afford on my income?

The estimate calculates separate housing-cost and total-debt limits from the percentages you enter, then estimates the loan principal supported by the lower available payment. The purchase budget adds your down payment.

Does this mean a lender will approve me for that amount?

No. This is a budgeting estimate, not a preapproval or underwriting decision. Lenders consider credit, assets, income documentation, loan program rules, property costs, and other factors.

Are property taxes, insurance, PMI, and HOA part of the loan?

They are separate monthly housing-cost estimates. They reduce the payment budget used by this calculator but are not financed into principal or included in loan interest.