Plan Your Purchase
Affordability Calculator
Explore how your income, monthly debts, and down payment shape your estimated homebuying budget.
Your numbers. Your next step.
Explore your homebuying budget.
Enter your income, monthly debts, and available down payment. Add your financing and property-cost assumptions, then select Calculate Affordability to view your estimate.
Beyond the purchase price
Understand your homebuying budget.
Your estimated purchase price connects a monthly housing budget with your down payment and financing assumptions. Understanding those pieces helps you compare possibilities and decide which figures need a closer look.
Your monthly starting point
Income & existing debts
The calculator divides annual gross income by 12, takes 36% of that monthly amount, then subtracts other monthly debt payments. The remainder is the housing budget used in this estimate.
That fixed 36% is a planning assumption, not a lender limit. Include debts that will continue after purchase; exclude the new home's payment and rent that will end.
Your purchase assumptions
Down payment & financing
The tool uses your interest rate and loan term to estimate how much borrowing fits the housing budget after property costs. Your available down payment contributes toward the estimated purchase price.
A larger down payment or different loan terms can change the result. Enter only funds available after setting aside closing costs and reserves. The calculation assumes a fixed-rate, fully amortizing loan.
Room for property costs
Taxes, insurance & HOA
Property taxes are estimated by applying your annual tax percentage to the calculated purchase price, then dividing by 12. Annual homeowners insurance is also divided by 12; HOA or condo fees are entered monthly.
These costs share the housing budget with principal and interest. Higher estimates generally leave less room for borrowing. Mortgage insurance is excluded, even when a loan program might require it.
Compare a few possibilities.
- Calculate your starting scenario and note the estimated purchase price and monthly housing cost.
- Adjust one input, such as the down payment, interest rate, or other monthly debt payments.
- Select Calculate Affordability again and compare the updated estimate with your starting point.
This estimate is not loan approval or a spending recommendation. Closing costs, mortgage insurance, utilities, maintenance, everyday expenses, and savings goals still need room in your actual budget.
A little more clarity
Questions about your homebuying budget?
Here’s what the affordability estimate includes, how its assumptions shape your results, and what to consider before using that number to plan your home search.
Is this the amount I’m approved to borrow?
No. The headline estimates a purchase price, while the loan amount appears separately. Neither is a financing approval or a recommendation to spend that amount. The calculator uses your inputs without reviewing credit, verifying income, or assessing your everyday spending and savings goals.
How does the 36% assumption affect my estimate?
The calculator takes 36% of gross monthly household income and subtracts other monthly debt payments to create a housing budget. It then estimates a purchase price that fits the entered financing and property costs. The 36% figure is a fixed planning assumption, not a lender qualification limit.
Are the starting numbers current quotes?
No. The starting values are examples, not current rate quotes or property-specific estimates. Replace them with information relevant to your situation. The property tax estimate applies your annual tax percentage to the calculated purchase price; the calculator does not retrieve an actual tax bill or insurance quote.
Which costs are outside this estimate?
The housing estimate includes principal and interest, estimated property taxes, homeowners insurance, and entered HOA or condo fees. Mortgage insurance, closing costs, utilities, maintenance, and other living expenses are excluded.
Enter only down-payment funds available after setting aside closing costs and reserves. The calculator does not deduct those amounts for you.
How do I update my estimate?
After editing your inputs, select Calculate Affordability. Results remain based on your last calculation while you type, so changing a field alone does not update the estimate.
Reset example restores the starting inputs without replacing your last result. Select Calculate Affordability again to use the restored values.
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