Home Affordability Calculator

How much house can you afford? Find out using this homebuilding affordability calculator.


What does this affordability calculator do?

Knowing your affordability range is crucial when starting your home search, as it helps you make informed decisions and prevents you from falling in love with a home that's beyond your means.

Factors that Determine Affordability

There are several factors that influence the amount you can afford to spend on a home, including:

  • Monthly income
  • Down payment
  • Mortgage interest rate
  • Loan term
  • Property taxes
  • Homeowner's insurance
  • Private mortgage insurance (if applicable)
  • Other monthly expenses (e.g., utilities, maintenance, HOA fees)

Debt-to-Income Ratio (DTI)

Your debt-to-income ratio (DTI) is a critical factor in determining your home affordability. DTI is calculated by dividing your monthly debt payments by your monthly gross income. Most lenders recommend a DTI of no more than 43% for homebuyers. To improve your DTI, you can pay down existing debt, increase your income, or both.

The Importance of a Good Credit Score

Your credit score plays a significant role in determining the mortgage interest rate you qualify for. The higher your credit score, the lower your interest rate is likely to be. Different loan types have varying minimum credit score requirements. To improve your credit score, focus on paying bills on time, reducing your credit card balances, and avoiding new debt.

Different Types of Mortgage Loans

There are several mortgage loan types to choose from, including conventional, FHA, VA, and USDA loans. Each loan type has its own set of requirements, benefits, and drawbacks, which can affect your overall home affordability.

The Role of the Down Payment

The size of your down payment can greatly impact your home affordability and monthly mortgage payments. A larger down payment typically leads to lower monthly payments and potentially lower interest rates. While a 20% down payment is often recommended, there are low down payment options available for those who qualify.

Additional Costs of Homeownership

When calculating affordability, don't forget to consider additional costs such as:

  • Closing costs
  • Moving expenses
  • Home maintenance and repairs
  • Potential home value appreciation and equity

How to Increase Home Affordability

To increase your home affordability, consider:

  • Saving for a larger down payment
  • Reducing monthly expenses
  • Exploring more affordable housing markets


Understanding how much house you can afford is a critical first step in the homebuying process. Use our Affordability Calculator as a starting point to help you make informed decisions and find a home that fits your budget.

For personalized advice and guidance, we encourage you to consult with a mortgage professional or real estate agent. Be sure to explore the other resources and tools available on our website to assist you in your homebuying journey. Good luck!