Mortgage Affordability Calculator
Find out how much house you can afford based on your income, debts, and loan terms
Max Home Price
See the maximum home price your income and savings can support
Full Cost Breakdown
Mortgage, property tax, and insurance split into monthly amounts
Yearly Amortization
Track principal vs. interest paid each year over the loan term
Related Keywords & Topics
Mortgage Affordability Calculator
Your Financial Details
Car loans, student loans, credit cards, etc.
Most lenders cap at 36–43%
Affordability Results
Maximum Home Price You Can Afford
$289,048.82
Loan: $239,048.82 + Down: $50,000.00
Monthly Mortgage
$1,510.95
Total Monthly Payment
$1,900.00
Monthly Property Tax
$289.05
Monthly Insurance
$100.00
Actual DTI
36.0%
Loan-to-Value
82.7%
Down Payment %
17.3%
Total Interest Paid
$304.89K
Payment Breakdown
Amortization Summary (Yearly)
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $2.67K | $15.46K | $236.38K |
| 2 | $2.85K | $15.28K | $233.53K |
| 3 | $3.04K | $15.09K | $230.48K |
| 4 | $3.25K | $14.89K | $227.24K |
| 5 | $3.46K | $14.67K | $223.78K |
| 6 | $3.69K | $14.44K | $220.08K |
| 7 | $3.94K | $14.19K | $216.14K |
| 8 | $4.21K | $13.93K | $211.93K |
| 9 | $4.49K | $13.64K | $207.44K |
| 10 | $4.79K | $13.34K | $202.66K |
| 11 | $5.11K | $13.02K | $197.55K |
| 12 | $5.45K | $12.68K | $192.10K |
| 13 | $5.82K | $12.31K | $186.28K |
| 14 | $6.21K | $11.93K | $180.07K |
| 15 | $6.62K | $11.51K | $173.45K |
| 16 | $7.07K | $11.07K | $166.39K |
| 17 | $7.54K | $10.59K | $158.85K |
| 18 | $8.04K | $10.09K | $150.81K |
| 19 | $8.58K | $9.55K | $142.22K |
| 20 | $9.16K | $8.97K | $133.07K |
| 21 | $9.77K | $8.36K | $123.30K |
| 22 | $10.42K | $7.71K | $112.87K |
| 23 | $11.12K | $7.01K | $101.75K |
| 24 | $11.87K | $6.26K | $89.88K |
| 25 | $12.66K | $5.47K | $77.22K |
| 26 | $13.51K | $4.62K | $63.71K |
| 27 | $14.41K | $3.72K | $49.30K |
| 28 | $15.38K | $2.75K | $33.92K |
| 29 | $16.41K | $1.72K | $17.51K |
| 30 | $17.51K | $622.56 | $0.00 |
Complete Guide to Mortgage Affordability
What Is Mortgage Affordability?
Mortgage affordability is the maximum home price you can responsibly finance given your income, existing debts, savings for a down payment, and prevailing interest rates. Lenders use a metric called the debt-to-income (DTI) ratio to decide how large a loan they will approve.
Understanding affordability before you shop prevents wasted time on homes outside your budget and protects you from becoming “house poor” — stretched so thin on housing costs that other financial goals suffer. This calculator gives you a realistic ceiling, not just a monthly payment estimate.
The Formulas Behind the Calculator
Maximum Monthly Housing Payment:
Max Housing = (Annual Income / 12) × (DTI% / 100) − Monthly Debts
Where DTI% is your target debt-to-income ratio (typically 36–43%)
Monthly Mortgage Payment (PMT):
PMT = L × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
Where L = loan amount, r = monthly interest rate, n = total number of payments
Max Loan Amount:
Max Loan = (Max Housing − Down × TaxRate/12 − Insurance/12) / (PMT factor + TaxRate/12)
Accounts for property tax and insurance eating into your housing budget
Benefits of Calculating Affordability First
Focused Home Search
Shop only within your realistic price range and avoid emotional overbidding
Stronger Offers
Knowing your ceiling lets you submit pre-qualified offers that sellers take seriously
Budget Protection
Keep monthly housing costs within safe limits so you can still save and invest. Try our Retirement Savings Calculator to balance both goals
Rate Sensitivity
See how even a 0.5% rate change shifts your buying power by tens of thousands
Tips for Maximising Affordability
Pay down existing debt first: Reducing car loans or credit card balances lowers your DTI and directly increases the mortgage a lender will offer. Use our EMI / Loan Calculator to plan payoff schedules
Save a larger down payment: A 20%+ down payment eliminates private mortgage insurance (PMI) and reduces your loan principal, cutting total interest dramatically
Compare loan terms: A 15-year mortgage has higher monthly payments but far less total interest. Check the Compound Interest Calculator to see how investing the savings difference could grow
Common Mistakes
Ignoring Property Tax and Insurance
Many buyers look only at principal and interest. Property taxes and homeowner’s insurance can add 20–30% on top of your base mortgage payment
Maxing Out Your DTI
Just because a lender approves 43% DTI doesn’t mean you should spend that much. A DTI of 28–32% leaves room for emergencies and other goals
Forgetting Closing Costs and Maintenance
Budget an additional 2–5% of the home price for closing costs and roughly 1% per year for upkeep — these are real expenses not captured in the monthly payment. Track your full financial picture with our Net Worth Calculator