Estimate the home price you can afford based on your income and debts.
30 Years
20 Years
15 Years
10 Years
Conservative (36%)
Standard (43%)
Aggressive (50%)
Estimated Home Buying Power
$0
Monthly Income:
Max Monthly PITI:
Loan Amount:
Est. Property Tax/Ins:
How Much House Can I Afford? A Comprehensive Guide
Determining your home buying power is the most critical first step in the real estate journey. While a pre-approval from a lender is the gold standard, using a home affordability calculator helps you understand the underlying math and sets realistic expectations for your property search.
Understanding the Debt-to-Income (DTI) Ratio
Lenders primarily use the Debt-to-Income ratio to decide how much they are willing to lend you. There are two types of DTI:
Front-End Ratio: The percentage of your gross income that goes toward housing costs (Principal, Interest, Taxes, and Insurance).
Back-End Ratio: The percentage of your income that goes toward ALL recurring debts, including your new mortgage, car loans, student loans, and credit card minimums.
Most conventional lenders prefer a back-end DTI of 43% or lower, though some FHA programs allow up to 50% in specific circumstances.
Key Factors That Influence Your Affordability
Several variables impact the final number you see in the calculator:
Annual Income: Your total gross (pre-tax) income is the foundation of your purchasing power.
Interest Rates: Even a 1% shift in interest rates can change your buying power by tens of thousands of dollars. Higher rates mean higher monthly payments for the same loan amount.
Down Payment: The more cash you bring to the table, the less you need to borrow, which directly increases the total home price you can afford.
Property Taxes & Insurance: These vary significantly by location. Our calculator estimates these at roughly 1.5% of the home value annually to ensure a realistic result.
Real-World Example
Factor
Example Figures
Annual Household Income
$100,000
Monthly Debt (Car/Student Loan)
$500
Interest Rate
6.5%
Down Payment
$60,000
Estimated Max Home Price
~$425,000
Tips to Increase Your Buying Power
If the result from the affordability calculator is lower than you hoped, consider these strategies: Improve your credit score to qualify for lower interest rates, pay down high-interest debt to lower your DTI, or save a larger down payment to reduce the principal loan amount. Always remember that what a bank "will" lend you isn't always what you "should" borrow—ensure the monthly payment fits comfortably within your lifestyle budget.
function calculateAffordability() {
var annualIncome = parseFloat(document.getElementById('annualIncome').value);
var monthlyDebt = parseFloat(document.getElementById('monthlyDebt').value);
var downPayment = parseFloat(document.getElementById('downPayment').value);
var annualInterest = parseFloat(document.getElementById('interestRate').value);
var years = parseInt(document.getElementById('loanTerm').value);
var dtiLimit = parseFloat(document.getElementById('dtiRatio').value);
if (isNaN(annualIncome) || isNaN(monthlyDebt) || isNaN(downPayment) || isNaN(annualInterest)) {
alert("Please enter valid numerical values.");
return;
}
// 1. Calculate Monthly Income
var monthlyIncome = annualIncome / 12;
// 2. Max Total Monthly Debt Allowed
var maxTotalDebt = monthlyIncome * dtiLimit;
// 3. Max Monthly PITI (Principal, Interest, Taxes, Insurance)
var maxPITI = maxTotalDebt – monthlyDebt;
if (maxPITI L = P * [(1 + c)^n – 1] / [c(1 + c)^n]
var monthlyRate = annualInterest / 100 / 12;
var numPayments = years * 12;
var loanAmount = 0;
if (monthlyRate > 0) {
var compound = Math.pow(1 + monthlyRate, numPayments);
loanAmount = monthlyPI * (compound – 1) / (monthlyRate * compound);
} else {
loanAmount = monthlyPI * numPayments;
}
// 6. Total Home Price
var totalHomePrice = loanAmount + downPayment;
// Formatting
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
maximumFractionDigits: 0
});
// Display Results
document.getElementById('homePriceResult').innerText = formatter.format(totalHomePrice);
document.getElementById('resMonthlyInc').innerText = formatter.format(monthlyIncome);
document.getElementById('resMaxPITI').innerText = formatter.format(maxPITI);
document.getElementById('resLoan').innerText = formatter.format(loanAmount);
document.getElementById('resTaxIns').innerText = formatter.format(estTaxIns) + "/mo";
document.getElementById('resultBox').style.display = 'block';
// Scroll to result
document.getElementById('resultBox').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}