The calculator
How much house can I afford?
Lenders work backward from your debt-to-income ratio. Put your numbers in. You will see the price that produces, and the payment behind it.
- No credit check
- No documents
- Free
- Housing allowance
- Existing debts
- Principal and interest
- Tax and insurance
At a glance
What it works out
Income to a realistic price
The calculator
What can you afford?
Move the sliders. Nothing is saved and this does not touch your credit.
Based on what is left for housing after your existing debts.
An estimate on a 30-year term, not a pre-approval. Insurance is set at 0.35 percent of price a year. Mortgage insurance, dues and lender fees are not included. Your letter uses real data.
The method
How lenders work it out
Affordability is a ratio, not a number. Here is the order it runs in.
Start with gross monthly income
Before tax, not what lands in your account. Bonus, overtime and commission usually need two years of history before a lender counts them.
Apply a debt-to-income target
43 percent is the usual benchmark. Conventional loans can reach 45 or 50 percent if you have strong savings or a high credit score.
Subtract your existing debt payments
Minimum payments on cars, cards, student loans and support. What is left is your housing budget.
Split the housing budget
That figure covers principal, interest, property tax and insurance. Add mortgage insurance and association dues if they apply. Only what remains goes to the loan.
Convert the payment into a price
The loan amount comes from that payment at current rates. Add your down payment and you have the price.
An estimate is not an approval
This runs on numbers you typed. A pre-approval runs on verified income and assets.
Get the real number90 seconds · No credit check
What moves it
Things that change your number
Paying off one debt
Clear the card with the biggest minimum payment first. That frees the most budget, even if the balance is small.
Rates moving a point
One point of rate moves what you can borrow by about ten percent. It is the biggest thing outside your control.
Property taxes by county
Tax rates vary a lot by area. The same payment buys less house in a high-tax county.
Reaching 20 percent down
At 20 percent down most programs drop mortgage insurance. That money goes back into your budget.
Your credit score
Your score sets your rate, and your rate sets your price. Twenty points can be worth thousands.
A 15-year term
Shorter terms mean higher payments. That raises your ratio and lowers the price you qualify for.
Questions
Common questions
How much house can I afford on my salary?
Lenders work backward from your debt-to-income ratio. Take your gross monthly income, apply a target such as 43 percent, subtract your existing minimum debt payments, and what is left is roughly what can go toward housing including taxes and insurance.
What is the 28/36 rule?
A guideline where your housing payment stays under 28 percent of gross monthly income and your total debt stays under 36 percent. It is stricter than what many lenders allow, so treat it as a comfort test rather than a limit.
Does my down payment change how much I can afford?
It changes the price you can reach, not the payment you can carry. A bigger deposit means a smaller loan for the same house, and above 20 percent it also removes mortgage insurance.
Do lenders count my gross or net income?
Gross, before tax. That is why a calculator can suggest a payment that feels tight against what actually lands in your account. Run your own household budget alongside this.
What counts as debt in the calculation?
The minimum monthly payment on each debt: car loans, student loans, credit cards, personal loans and child support. Balances do not count, only the required monthly payment.
Is a pre-approval the same as this estimate?
No. This is arithmetic on numbers you typed. A pre-approval verifies your actual income and assets, and it is what a seller will take seriously.
Keep reading
Related guides
Monthly payment calculator
Work out the full payment on a specific price.
Debt-to-income explained
How the ratio is worked out and why it caps you.
Mortgage pre-approval
Turn an estimate into a verified number.
Independent sources
- Consumer Financial Protection Bureau — working out what you can afford
Turn the estimate into a real number
Verified income and assets, in about 90 seconds.
No credit check · No documents · Free