MasterTool

Home Affordability Calculator

Calculate home affordability from your own entered figures.

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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.

What this tool does

Calculate home affordability from your own entered figures. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Supporting budgeting estimate, not lender approval; excludes PMI, HOA fees and closing costs unless allowed for in your inputs.

How to use the Home Affordability Calculator

  1. Enter or select gross monthly income.
  2. Enter or select maximum total debt-to-income (%).
  3. Enter or select other monthly debt payments.
  4. Enter or select monthly property tax and insurance allowance.
  5. Enter or select mortgage apr (%).
  6. Enter or select loan term (years).
  7. Enter or select cash down payment.
  8. Read the calculated result; change any measurement to compare alternatives.

Formula

available mortgage payment=max(0,income×DTI/100−other debts−tax/insurance); loan=payment×(1−(1+monthlyRate)^−months)/monthlyRate
income
Gross monthly income
dti
Maximum total debt-to-income (%)
debts
Other monthly debt payments
tax
Monthly property tax and insurance allowance
apr
Mortgage APR (%)
years
Loan term (years)
down
Cash down payment

User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Supporting budgeting estimate, not lender approval; excludes PMI, HOA fees and closing costs unless allowed for in your inputs.

Worked example

For home affordability calculator, the following measurements illustrate the exact method: Gross monthly income: 8000; Maximum total debt-to-income (%): 36; Other monthly debt payments: 500; Monthly property tax and insurance allowance: 600; Mortgage APR (%): 6.5; Loan term (years): 30; Cash down payment: 80000.

Inputs

  • Gross monthly income8000
  • Maximum total debt-to-income (%)36
  • Other monthly debt payments500
  • Monthly property tax and insurance allowance600
  • Mortgage APR (%)6.5
  • Loan term (years)30
  • Cash down payment80000

Result

  • Estimated purchase-price ceiling$361,615.26
  • Mortgage loan amount$281,615.26
  • Available principal and interest payment$1,780.00

Results explained

Estimated purchase-price ceiling
Estimated purchase-price ceiling from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Supporting budgeting estimate, not lender approval; excludes PMI, HOA fees and closing costs unless allowed for in your inputs.
Mortgage loan amount
Mortgage loan amount from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Supporting budgeting estimate, not lender approval; excludes PMI, HOA fees and closing costs unless allowed for in your inputs.
Available principal and interest payment
Available principal and interest payment from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Supporting budgeting estimate, not lender approval; excludes PMI, HOA fees and closing costs unless allowed for in your inputs.

Frequently asked questions

available mortgage payment=max(0,income×DTI/100−other debts−tax/insurance); loan=payment×(1−(1+monthlyRate)^−months)/monthlyRate

User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Supporting budgeting estimate, not lender approval; excludes PMI, HOA fees and closing costs unless allowed for in your inputs.

No. All numbers are entered by you or come from the dated reference table shown on this page; calculations run locally.

This is an estimate, not financial, tax or legal advice. Verify the inputs and output with official sources and a qualified professional.

Check period consistency, currency, percentage inputs and the assumptions: User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Supporting budgeting estimate, not lender approval; excludes PMI, HOA fees and closing costs unless allowed for in your inputs.