Using the Home Affordability Calculator
How this home affordability estimate works
Enter gross annual income, existing monthly debt payments, down payment, an assumed mortgage rate and term, and a target total debt ratio. The calculator applies your chosen ratio to gross monthly income, subtracts the monthly debts you entered, and estimates a mortgage amount from the remaining payment capacity.
Use the estimate as a starting point
The target ratio is an input for exploring a budget, not a lender rule or a recommendation. The result estimates principal and interest capacity; it does not include property tax, homeowners insurance, mortgage insurance, HOA dues, utilities, maintenance, or closing costs. Those costs can materially change a comfortable price range.
Build a more complete home budget
Compare the calculator result with your monthly take-home pay, savings goals, emergency fund, and expected homeownership costs. Ask lenders about qualification requirements and request written estimates. A lender’s maximum approval amount is not necessarily the amount that feels manageable for your household.
Frequently asked questions
Does this tell me what a lender will approve?
No. Lenders review credit, income, assets, documentation, loan type, and other factors. This is a planning estimate only.
Why enter monthly debts?
The calculator subtracts the debts you enter from the target total monthly debt amount to estimate the remaining payment capacity for housing.
Does the home price include closing costs?
No. The result estimates a purchase price from a down payment and estimated mortgage principal. Taxes, insurance, and closing costs are not included.
Related tools: browse all free money calculators, or see how My Clear Money builds and explains its estimates.