What House Can I Afford Calculator
Your Affordability Estimate:
Enter your details and click "Calculate Affordability" to see your estimate.
function calculateAffordability() {
// Get input values
var annualIncome = parseFloat(document.getElementById("annualIncome").value);
var monthlyDebts = parseFloat(document.getElementById("monthlyDebts").value);
var savingsDownPayment = parseFloat(document.getElementById("savingsDownPayment").value);
var desiredDownPaymentPercent = parseFloat(document.getElementById("desiredDownPaymentPercent").value);
var propertyTaxRate = parseFloat(document.getElementById("propertyTaxRate").value);
var annualInsurance = parseFloat(document.getElementById("annualInsurance").value);
var annualHOA = parseFloat(document.getElementById("annualHOA").value);
var interestRate = parseFloat(document.getElementById("interestRate").value);
var loanTermYears = parseFloat(document.getElementById("loanTermYears").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
// Input validation
if (isNaN(annualIncome) || annualIncome < 0 ||
isNaN(monthlyDebts) || monthlyDebts < 0 ||
isNaN(savingsDownPayment) || savingsDownPayment < 0 ||
isNaN(desiredDownPaymentPercent) || desiredDownPaymentPercent 100 ||
isNaN(propertyTaxRate) || propertyTaxRate < 0 ||
isNaN(annualInsurance) || annualInsurance < 0 ||
isNaN(annualHOA) || annualHOA < 0 ||
isNaN(interestRate) || interestRate < 0 ||
isNaN(loanTermYears) || loanTermYears <= 0) {
resultDiv.innerHTML = "Please enter valid positive numbers for all fields.";
return;
}
// Convert percentages to factors
var desiredDownPaymentFactor = desiredDownPaymentPercent / 100;
var monthlyPropertyTaxRate = (propertyTaxRate / 100) / 12;
var monthlyInterestRate = (interestRate / 100) / 12;
var loanTermMonths = loanTermYears * 12;
// Calculate monthly income and fixed monthly costs
var monthlyIncome = annualIncome / 12;
var monthlyInsurance = annualInsurance / 12;
var monthlyHOA = annualHOA / 12;
// — Step 1: Calculate Maximum Monthly Housing Payment based on DTI rules —
// Front-end DTI (housing costs only) should not exceed 28% of gross monthly income
var maxHousingPayment_28 = monthlyIncome * 0.28;
// Back-end DTI (housing costs + other monthly debts) should not exceed 36% of gross monthly income
var maxTotalDebtPayment_36 = monthlyIncome * 0.36;
var maxHousingPayment_from_36 = maxTotalDebtPayment_36 – monthlyDebts;
var maxAllowedMonthlyHousingPayment = Math.min(maxHousingPayment_28, maxHousingPayment_from_36);
if (maxAllowedMonthlyHousingPayment 0) {
mortgageFactor = (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, loanTermMonths)) / (Math.pow(1 + monthlyInterestRate, loanTermMonths) – 1);
} else {
mortgageFactor = 1 / loanTermMonths; // Simple principal division if interest is 0
}
// — Step 3: Calculate Max Home Price based on DTI (assuming desired DP % is met) —
var hp_DTI_temp = 0;
if (desiredDownPaymentFactor === 1) { // 100% down payment
hp_DTI_temp = savingsDownPayment; // If 100% DP, affordability is limited by savings
} else if (desiredDownPaymentFactor < 1) {
var numerator = maxAllowedMonthlyHousingPayment – monthlyInsurance – monthlyHOA;
var denominator = (mortgageFactor * (1 – desiredDownPaymentFactor)) + monthlyPropertyTaxRate;
if (denominator 1 (should be caught by validation, but for safety)
hp_DTI_temp = 0;
}
// — Step 4: Calculate Max Home Price based on Available Down Payment (meeting desired DP %) —
var hp_DP_temp = 0;
if (desiredDownPaymentFactor > 0) {
hp_DP_temp = savingsDownPayment / desiredDownPaymentFactor;
} else { // 0% down payment desired
hp_DP_temp = Infinity; // Down payment is not a limiting factor here
}
// — Step 5: Determine the overall Max Affordable Home Price —
var maxAffordableHomePrice = Math.min(hp_DTI_temp, hp_DP_temp);
if (maxAffordableHomePrice <= 0 || isNaN(maxAffordableHomePrice) || maxAffordableHomePrice === Infinity) {
resultDiv.innerHTML = "Based on your inputs, it appears you may not be able to afford a home at this time. Consider adjusting your desired down payment, reducing debts, or increasing your income/savings.";
return;
}
// — Step 6: Calculate Final Metrics for the determined maxAffordableHomePrice —
var actualDownPayment;
var finalLoanAmount;
var actualDownPaymentPercentage;
var requiredDownPaymentForMaxHP = maxAffordableHomePrice * desiredDownPaymentFactor;
if (savingsDownPayment < requiredDownPaymentForMaxHP) {
// Available savings are the limiting factor for down payment
actualDownPayment = savingsDownPayment;
finalLoanAmount = maxAffordableHomePrice – actualDownPayment;
actualDownPaymentPercentage = (actualDownPayment / maxAffordableHomePrice) * 100;
} else {
// DTI was the limiting factor, and savings are sufficient for desired DP %
actualDownPayment = requiredDownPaymentForMaxHP;
finalLoanAmount = maxAffordableHomePrice – actualDownPayment;
actualDownPaymentPercentage = desiredDownPaymentPercent;
}
// Ensure loan amount is not negative due to rounding or edge cases
if (finalLoanAmount 0 && loanTermMonths > 0) {
if (monthlyInterestRate > 0) {
finalMonthlyP_and_I = finalLoanAmount * mortgageFactor;
} else {
finalMonthlyP_and_I = finalLoanAmount / loanTermMonths;
}
}
var finalMonthlyPropertyTax = maxAffordableHomePrice * monthlyPropertyTaxRate;
var finalMonthlyInsurance = monthlyInsurance;
var finalMonthlyHOA = monthlyHOA;
var finalTotalMonthlyHousingCost = finalMonthlyP_and_I + finalMonthlyPropertyTax + finalMonthlyInsurance + finalMonthlyHOA;
var finalTotalMonthlyDebtToIncomeRatio = 0;
if (monthlyIncome > 0) {
finalTotalMonthlyDebtToIncomeRatio = ((finalTotalMonthlyHousingCost + monthlyDebts) / monthlyIncome) * 100;
}
// Display results
var resultsHTML = "
";
resultsHTML += "- Maximum Affordable Home Price: $" + maxAffordableHomePrice.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "
";
resultsHTML += "- Estimated Down Payment: $" + actualDownPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + " (" + actualDownPaymentPercentage.toLocaleString(undefined, {minimumFractionDigits: 1, maximumFractionDigits: 1}) + "%)
";
resultsHTML += "- Estimated Loan Amount: $" + finalLoanAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "
";
resultsHTML += "- Estimated Monthly Principal & Interest: $" + finalMonthlyP_and_I.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "
";
resultsHTML += "- Estimated Total Monthly Housing Costs (PITI+HOA): $" + finalTotalMonthlyHousingCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "
";
resultsHTML += "- Estimated Total Monthly Debt-to-Income Ratio: " + finalTotalMonthlyDebtToIncomeRatio.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "%
";
resultsHTML += "
";
resultDiv.innerHTML = resultsHTML;
}
.calculator-container {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
background-color: #f9f9f9;
padding: 25px;
border-radius: 10px;
box-shadow: 0 4px 12px rgba(0, 0, 0, 0.1);
max-width: 600px;
margin: 20px auto;
border: 1px solid #e0e0e0;
}
.calculator-container h2 {
text-align: center;
color: #333;
margin-bottom: 25px;
font-size: 1.8em;
}
.form-group {
margin-bottom: 18px;
display: flex;
flex-direction: column;
}
.form-group label {
margin-bottom: 8px;
color: #555;
font-size: 1em;
font-weight: 600;
}
.form-group input[type="number"] {
padding: 12px;
border: 1px solid #ccc;
border-radius: 6px;
font-size: 1.1em;
width: 100%;
box-sizing: border-box;
transition: border-color 0.3s ease;
}
.form-group input[type="number"]:focus {
border-color: #007bff;
outline: none;
box-shadow: 0 0 5px rgba(0, 123, 255, 0.2);
}
.calculate-button {
display: block;
width: 100%;
padding: 15px;
background-color: #007bff;
color: white;
border: none;
border-radius: 6px;
font-size: 1.2em;
font-weight: bold;
cursor: pointer;
transition: background-color 0.3s ease, transform 0.2s ease;
margin-top: 20px;
}
.calculate-button:hover {
background-color: #0056b3;
transform: translateY(-2px);
}
.calculator-results {
background-color: #e9f7ff;
border: 1px solid #cce5ff;
border-radius: 8px;
padding: 20px;
margin-top: 30px;
}
.calculator-results h3 {
color: #0056b3;
margin-top: 0;
margin-bottom: 15px;
font-size: 1.5em;
text-align: center;
}
.calculator-results p, .calculator-results ul {
color: #333;
font-size: 1.1em;
line-height: 1.6;
}
.calculator-results ul {
list-style-type: none;
padding: 0;
margin: 0;
}
.calculator-results ul li {
margin-bottom: 10px;
padding-left: 15px;
position: relative;
}
.calculator-results ul li strong {
color: #003d80;
}
.calculator-results ul li:last-child {
margin-bottom: 0;
}
/* Responsive adjustments */
@media (max-width: 600px) {
.calculator-container {
padding: 15px;
margin: 10px;
}
.calculator-container h2 {
font-size: 1.5em;
}
.form-group label, .form-group input, .calculate-button, .calculator-results p, .calculator-results ul li {
font-size: 0.95em;
}
.calculate-button {
padding: 12px;
}
}
Understanding What House You Can Truly Afford
Buying a home is one of the biggest financial decisions you'll ever make. It's not just about the sticker price; it's about understanding the ongoing costs and how they fit into your overall financial picture. Our "What House Can I Afford Calculator" helps you estimate a realistic home price based on your income, debts, savings, and other crucial housing expenses.
Key Factors Influencing Your Home Affordability
Several elements come into play when determining how much house you can comfortably afford. This calculator takes these into account:
- Annual Household Income: Your gross income is the foundation. Lenders use this to assess your ability to make monthly payments.
- Total Monthly Debt Payments: This includes car loans, student loans, credit card minimums, and other recurring debts (excluding your current rent/mortgage). High existing debts reduce the amount you can allocate to a new home loan.
- Available Savings for Down Payment: The more you can put down upfront, the less you need to borrow, which can significantly lower your monthly payments and potentially avoid Private Mortgage Insurance (PMI).
- Desired Down Payment Percentage: While 20% is often recommended to avoid PMI, many buyers put down less. This calculator helps you see how your desired percentage impacts the affordable home price.
- Estimated Annual Property Tax Rate: Property taxes are a significant ongoing cost that varies by location and is usually calculated as a percentage of the home's assessed value.
- Estimated Annual Home Insurance Cost: Homeowner's insurance protects your investment and is typically required by lenders.
- Estimated Annual HOA Fees (if any): If you're looking at condos, townhouses, or homes in planned communities, Homeowners Association (HOA) fees are a mandatory monthly expense.
- Estimated Mortgage Interest Rate: Even though this isn't a loan calculator, the interest rate directly impacts your monthly mortgage payment, which is a major component of affordability.
- Mortgage Term in Years: The length of your loan (e.g., 15 or 30 years) affects your monthly payment. A longer term means lower monthly payments but more interest paid over time.
The Debt-to-Income (DTI) Ratio: A Lender's Perspective
Lenders primarily use your Debt-to-Income (DTI) ratio to determine how much they are willing to lend you. This calculator uses common DTI guidelines:
- Front-End DTI (Housing Ratio): This is the percentage of your gross monthly income that goes towards housing costs (principal, interest, property taxes, and insurance – PITI, plus HOA fees). Lenders typically prefer this to be no more than 28%.
- Back-End DTI (Total Debt Ratio): This is the percentage of your gross monthly income that goes towards all your monthly debt payments, including your new housing costs. Most lenders look for this to be no more than 36%, though some programs allow up to 43% or even higher in certain circumstances.
Our calculator uses these ratios to determine the maximum monthly housing payment you can realistically afford, which then helps calculate your maximum affordable home price.
How This Calculator Works
This tool takes your financial inputs and applies standard affordability rules to give you an estimated maximum home price. It considers:
- Your ability to meet the monthly housing payment based on DTI limits.
- Your ability to provide the desired down payment with your available savings.
The calculator will present the lower of the two resulting home prices, as both constraints must be satisfied. It then breaks down the estimated monthly costs associated with that affordable price.
Important Considerations and Disclaimers
- Estimates Only: This calculator provides an estimate. Your actual affordability may vary based on specific lender requirements, credit score, loan programs, and market conditions.
- Closing Costs: This calculator does not include closing costs (typically 2-5% of the loan amount), which are additional upfront expenses.
- Emergency Fund: It's wise to maintain an emergency fund separate from your down payment savings.
- Future Expenses: Factor in potential home maintenance, utility costs, and other lifestyle changes that come with homeownership.
Always consult with a qualified mortgage lender or financial advisor to get a personalized assessment of your home affordability and to understand all your financing options.