How Much House Can You Afford?

What This Calculator Tells You

This calculator will help you determine how much mortgage you can comfortably afford based on your income, monthly debt obligation and the price of the home you are aiming to buy. You can also gain a more accurate idea by altering the "Advanced Settings" and inputting an interest rate, property tax percentage based on the local housing market you're trying to buy in and the average homeowners insurance amount.

Your real homebuying budget will likely shift depending on a few important details, such as your credit score, the exact property taxes in your area, HOA dues, and the loan program that best fits your situation.

Which is why many buyers choose (and agents recommend) to get pre-approved. Pre-approval looks at your full financial picture and gives you a personalized answer instead of an estimate. It will also make your offer stand out among sellers during the home shopping process.

Get started on your loan pre-approval.

How Lenders Determine What You Can Afford

If you're wondering how lenders come up with a number in the first place, it's actually more straightforward than it sounds. Here are the main pieces they look at:

Your Income

First, lenders look at your gross monthly income — that's what you earn before taxes are taken out.

This could include your salary or hourly wages, bonuses or commissions, self-employment income, or other reliable income sources. The idea is simple: they want to understand what's consistently coming in each month.

From there, they compare that income to your current debts and your potential mortgage payment.

Your Debt-to-Income Ratio (DTI)

You might hear the term “debt-to-income ratio,” or DTI. In plain language, it's the percentage of your monthly income that goes toward debt payments.

It answers one basic question: how much of your income is already committed?

For example, if you earn $5,000 per month and $1,500 goes toward things like a car loan, student loans, or credit cards, then 30% of your income is already spoken for. That's your DTI.

Lenders prefer to see total monthly debts around 36% to 43% of your gross income (including your housing payment), to make sure adding a mortgage won't stretch you too thin.

Your Down Payment

Your down payment is the amount you put toward the home upfront. It counts toward the purchase price, which means you borrow less.

For example, if you buy a $250,000 home and put $10,000 down, you're not borrowing the full $250,000. You're borrowing $240,000.

In general, a larger down payment can increase how much home you can afford and will lower your monthly payment, but there's a common myth that you must have 20% saved. That isn't always true.

Programs like USDA loans and VA loans offer zero down payment options for eligible buyers, and certain conventional loan programs allow down payments as low as 3%.

How Much Should You Actually Spend on a Home?

This is where things get personal. A lender may approve you for a certain amount, and the calculator may show you a maximum number, but that doesn't mean you have to spend up to that limit. The better question might be: What feels comfortable for you?

Think about the life you want inside your home. Do you want room in your budget for travel? For building savings?

Buying at the very top of your budget isn't always the right move. Sometimes choosing a home that leaves breathing room will help homeownership feel steady and sustainable. It can give you the freedom to handle repairs, build an emergency fund, and enjoy your home without constant financial stress.

How to Budget For Costs Beyond the Mortgage

When you're planning your budget, it helps to look beyond just the mortgage payment. An easy framework is the 50/30/20 rule. Here's how it works:

50% for needs
This includes essentials like housing (including property taxes, homeowners insurance, and any HOA fees), utilities, groceries, insurance, minimum debt payments, and transportation.

30% for wants
Dining out, subscriptions, travel, hobbies, and entertainment — the things that make life enjoyable.

20% for savings and debt payoff
Emergency fund, retirement, extra debt payments, and future goals.

If your mortgage payment will push your essential expenses far beyond that range, it may start to feel tight month to month. But these are guidelines, not rules carved in stone. The healthiest budget is the one that allows consistent savings, a small emergency cushion, and breathing room in your monthly cash flow.

Homeownership should bring stability, not constant stress.