Use this calculator to estimate the maximum home price you can realistically afford based on your income, debts, savings goals, and other monthly expenses, along with estimated housing costs like interest, property taxes, and insurance. This tool helps you understand your purchasing power from a personal budget perspective, not just a lender's.
Your Affordability Estimate:
Maximum Affordable Home Price:$0.00
Estimated Maximum Monthly Mortgage Payment (Principal & Interest):$0.00
Estimated Monthly Property Tax:$0.00
Estimated Monthly Home Insurance:$0.00
Total Estimated Monthly Housing Cost (PITI):$0.00
function calculateAffordability() {
// Get input values
var grossMonthlyIncome = parseFloat(document.getElementById('grossMonthlyIncome').value);
var totalMonthlyDebts = parseFloat(document.getElementById('totalMonthlyDebts').value);
var desiredMonthlySavings = parseFloat(document.getElementById('desiredMonthlySavings').value);
var otherMonthlyExpenses = parseFloat(document.getElementById('otherMonthlyExpenses').value);
var downPaymentAvailable = parseFloat(document.getElementById('downPaymentAvailable').value);
var estimatedInterestRate = parseFloat(document.getElementById('estimatedInterestRate').value);
var loanTermYears = parseFloat(document.getElementById('loanTermYears').value);
var annualPropertyTaxRate = parseFloat(document.getElementById('annualPropertyTaxRate').value);
var annualHomeInsurance = parseFloat(document.getElementById('annualHomeInsurance').value);
// Validate inputs
if (isNaN(grossMonthlyIncome) || isNaN(totalMonthlyDebts) || isNaN(desiredMonthlySavings) ||
isNaN(otherMonthlyExpenses) || isNaN(downPaymentAvailable) || isNaN(estimatedInterestRate) ||
isNaN(loanTermYears) || isNaN(annualPropertyTaxRate) || isNaN(annualHomeInsurance) ||
grossMonthlyIncome < 0 || totalMonthlyDebts < 0 || desiredMonthlySavings < 0 ||
otherMonthlyExpenses < 0 || downPaymentAvailable < 0 || estimatedInterestRate < 0 ||
loanTermYears <= 0 || annualPropertyTaxRate < 0 || annualHomeInsurance < 0) {
document.getElementById('maxAffordableHomePrice').innerText = 'Please enter valid numbers for all fields.';
document.getElementById('maxMonthlyMortgagePayment').innerText = '$0.00';
document.getElementById('estimatedMonthlyPropertyTax').innerText = '$0.00';
document.getElementById('estimatedMonthlyHomeInsurance').innerText = '$0.00';
document.getElementById('totalEstimatedMonthlyHousingCost').innerText = '$0.00';
return;
}
// Calculate monthly interest rate and number of payments
var monthlyInterestRate = (estimatedInterestRate / 100) / 12;
var numberOfPayments = loanTermYears * 12;
// Calculate estimated monthly home insurance
var monthlyHomeInsurance = annualHomeInsurance / 12;
// Calculate maximum monthly housing payment based on personal budget
var maxMonthlyHousingPaymentBudget = grossMonthlyIncome – totalMonthlyDebts – desiredMonthlySavings – otherMonthlyExpenses;
if (maxMonthlyHousingPaymentBudget <= 0) {
document.getElementById('maxAffordableHomePrice').innerText = 'Your budget does not allow for housing costs after other expenses and savings.';
document.getElementById('maxMonthlyMortgagePayment').innerText = '$0.00';
document.getElementById('estimatedMonthlyPropertyTax').innerText = '$0.00';
document.getElementById('estimatedMonthlyHomeInsurance').innerText = '$' + monthlyHomeInsurance.toFixed(2);
document.getElementById('totalEstimatedMonthlyHousingCost').innerText = '$' + maxMonthlyHousingPaymentBudget.toFixed(2);
return;
}
// Amount available for Principal & Interest and Property Tax
var availableForPIAndTax = maxMonthlyHousingPaymentBudget – monthlyHomeInsurance;
if (availableForPIAndTax <= 0) {
document.getElementById('maxAffordableHomePrice').innerText = 'Your budget is too tight to cover even estimated property taxes and principal/interest after insurance.';
document.getElementById('maxMonthlyMortgagePayment').innerText = '$0.00';
document.getElementById('estimatedMonthlyPropertyTax').innerText = '$0.00';
document.getElementById('estimatedMonthlyHomeInsurance').innerText = '$' + monthlyHomeInsurance.toFixed(2);
document.getElementById('totalEstimatedMonthlyHousingCost').innerText = '$' + maxMonthlyHousingPaymentBudget.toFixed(2);
return;
}
// Calculate the mortgage factor for P&I
var mortgageFactor;
if (monthlyInterestRate === 0) {
mortgageFactor = 1 / numberOfPayments; // Simple division if interest is 0
} else {
mortgageFactor = (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
}
// Monthly property tax rate as a decimal
var monthlyPropertyTaxRateDecimal = (annualPropertyTaxRate / 100) / 12;
// Solve for Loan Amount (P) using the derived formula:
// P = (A – T_rate * DP) / (MortgageFactor + T_rate)
var loanAmount = (availableForPIAndTax – (monthlyPropertyTaxRateDecimal * downPaymentAvailable)) / (mortgageFactor + monthlyPropertyTaxRateDecimal);
var maxAffordableHomePrice;
var estimatedMonthlyPropertyTax;
var maxMonthlyMortgagePaymentPI;
var totalEstimatedMonthlyHousingCost;
if (loanAmount < 0) {
// If loanAmount is negative, it means availableForPIAndTax isn't even enough to cover property tax on the down payment.
// In this scenario, the user can only afford a home up to their down payment, with no loan.
maxAffordableHomePrice = downPaymentAvailable;
maxMonthlyMortgagePaymentPI = 0;
estimatedMonthlyPropertyTax = (annualPropertyTaxRate / 100) * maxAffordableHomePrice / 12;
totalEstimatedMonthlyHousingCost = estimatedMonthlyPropertyTax + monthlyHomeInsurance;
document.getElementById('maxAffordableHomePrice').innerText = 'With your budget, you can only afford a home up to your down payment amount, covering only property taxes and insurance on that amount: $' + maxAffordableHomePrice.toFixed(2);
document.getElementById('maxMonthlyMortgagePayment').innerText = '$' + maxMonthlyMortgagePaymentPI.toFixed(2);
document.getElementById('estimatedMonthlyPropertyTax').innerText = '$' + estimatedMonthlyPropertyTax.toFixed(2);
document.getElementById('estimatedMonthlyHomeInsurance').innerText = '$' + monthlyHomeInsurance.toFixed(2);
document.getElementById('totalEstimatedMonthlyHousingCost').innerText = '$' + totalEstimatedMonthlyHousingCost.toFixed(2);
return;
}
maxAffordableHomePrice = loanAmount + downPaymentAvailable;
// Recalculate components based on the determined maxAffordableHomePrice
estimatedMonthlyPropertyTax = (annualPropertyTaxRate / 100) * maxAffordableHomePrice / 12;
maxMonthlyMortgagePaymentPI = maxMonthlyHousingPaymentBudget – estimatedMonthlyPropertyTax – monthlyHomeInsurance;
// Ensure P&I is not negative due to rounding or small discrepancies
if (maxMonthlyMortgagePaymentPI < 0) {
maxMonthlyMortgagePaymentPI = 0;
loanAmount = 0;
maxAffordableHomePrice = downPaymentAvailable; // If P&I is 0, then loan amount is 0, so home price is just down payment
estimatedMonthlyPropertyTax = (annualPropertyTaxRate / 100) * maxAffordableHomePrice / 12; // Recalculate tax for just down payment
}
totalEstimatedMonthlyHousingCost = maxMonthlyMortgagePaymentPI + estimatedMonthlyPropertyTax + monthlyHomeInsurance;
// Display results
document.getElementById('maxAffordableHomePrice').innerText = '$' + maxAffordableHomePrice.toFixed(2);
document.getElementById('maxMonthlyMortgagePayment').innerText = '$' + maxMonthlyMortgagePaymentPI.toFixed(2);
document.getElementById('estimatedMonthlyPropertyTax').innerText = '$' + estimatedMonthlyPropertyTax.toFixed(2);
document.getElementById('estimatedMonthlyHomeInsurance').innerText = '$' + monthlyHomeInsurance.toFixed(2);
document.getElementById('totalEstimatedMonthlyHousingCost').innerText = '$' + totalEstimatedMonthlyHousingCost.toFixed(2);
}
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background-color: #f9f9f9;
padding: 25px;
border-radius: 10px;
box-shadow: 0 4px 12px rgba(0, 0, 0, 0.1);
max-width: 700px;
margin: 20px auto;
border: 1px solid #e0e0e0;
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text-align: center;
color: #2c3e50;
margin-bottom: 20px;
font-size: 1.8em;
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line-height: 1.6;
margin-bottom: 15px;
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display: block;
margin-bottom: 8px;
color: #34495e;
font-weight: bold;
font-size: 0.95em;
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box-sizing: border-box;
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.calculator-inputs input[type="number"]:focus {
border-color: #007bff;
box-shadow: 0 0 5px rgba(0, 123, 255, 0.3);
outline: none;
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.calculator-inputs button {
display: block;
width: 100%;
padding: 12px 20px;
background-color: #28a745;
color: white;
border: none;
border-radius: 5px;
font-size: 1.1em;
font-weight: bold;
cursor: pointer;
transition: background-color 0.3s ease;
margin-top: 20px;
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.calculator-inputs button:hover {
background-color: #218838;
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background-color: #e9f7ef;
border: 1px solid #d4edda;
border-radius: 8px;
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color: #28a745;
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justify-content: space-between;
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color: #2c3e50;
flex-basis: 70%;
}
.calculator-results p span {
color: #007bff;
font-weight: bold;
flex-basis: 30%;
text-align: right;
}
/* Responsive adjustments */
@media (max-width: 600px) {
.calculator-container {
padding: 15px;
margin: 10px auto;
}
.calculator-inputs input[type="number"],
.calculator-inputs button {
font-size: 0.95em;
padding: 10px;
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.calculator-results p {
flex-direction: column;
align-items: flex-start;
}
.calculator-results p span {
text-align: left;
margin-top: 5px;
}
}
Understanding How Much House You Can Truly Afford
Buying a home is one of the biggest financial decisions you'll ever make. It's easy to get caught up in dream homes and impressive listing prices, but the real question is: how much house can you *truly* afford? This isn't just about what a lender might approve you for; it's about what fits comfortably into your personal budget without straining your finances or sacrificing your other financial goals.
Beyond the Sticker Price: The True Cost of Homeownership
Many first-time homebuyers focus solely on the mortgage principal and interest. However, the actual monthly cost of owning a home, often referred to as PITI, includes four main components:
Principal: The portion of your payment that goes towards paying down the original loan amount.
Interest: The cost of borrowing the money.
Taxes: Property taxes assessed by local government, which can vary significantly by location.
Insurance: Homeowner's insurance to protect your property against damage and liability.
Our calculator helps you factor in all these elements, along with your personal financial situation, to give you a realistic affordability estimate.
Key Factors Influencing Your Home Affordability
Your ability to afford a home is a complex equation influenced by several personal and market factors:
Your Gross Monthly Income: This is your total earnings before taxes and deductions. It's the foundation of your budget.
Your Total Monthly Debt Payments: Existing debts like car loans, student loans, and credit card minimums reduce the amount of income available for housing. Lenders often look at your debt-to-income (DTI) ratio.
Your Desired Monthly Savings: Don't overlook your financial future! Setting aside money for retirement, emergencies, or other goals is crucial. A home shouldn't derail your savings plan.
Your Other Monthly Living Expenses: This includes everything from groceries and utilities to transportation, entertainment, and personal care. These non-housing expenses directly impact how much you have left for a mortgage.
Your Available Down Payment Funds: A larger down payment reduces the amount you need to borrow, lowering your monthly mortgage payments and potentially securing a better interest rate.
Estimated Annual Mortgage Interest Rate: The interest rate significantly impacts your monthly principal and interest payment. Even a small difference can mean thousands over the life of the loan.
Desired Loan Term (Years): Common terms are 15 or 30 years. A shorter term means higher monthly payments but less interest paid overall. A longer term means lower monthly payments but more total interest.
Estimated Annual Property Tax Rate: Property taxes are a recurring cost based on your home's assessed value. Rates vary widely by state, county, and even city.
Estimated Annual Home Insurance Cost: This protects your home from unforeseen events. Costs depend on location, home value, deductible, and coverage specifics.
How This Calculator Works
Unlike a simple loan calculator that tells you what you can borrow for a specific home price, this tool works backward from your personal budget. It first determines how much you can comfortably allocate to total housing costs (PITI) after accounting for your income, existing debts, desired savings, and other living expenses. Then, it uses this maximum housing budget, along with estimated interest rates, property taxes, and insurance, to calculate the maximum home price you can afford, including your available down payment.
Important Considerations and Disclaimers
While this calculator provides a robust estimate, remember these points:
This is an Estimate: Market conditions, lender specific requirements, and your credit score can all influence actual loan approvals and rates.
Closing Costs: This calculator does not include closing costs, which can be 2-5% of the loan amount and are paid upfront.
Maintenance and Repairs: Homeownership comes with ongoing maintenance costs and unexpected repairs. Budgeting for these is essential.
Homeowners Association (HOA) Fees: If you're buying in a community with an HOA, these monthly fees will add to your housing expenses.
Personal Comfort Level: Just because you can afford a certain amount doesn't mean you should stretch your budget to the absolute limit. Consider your comfort level with the monthly payment.
Use this calculator as a powerful starting point for your home-buying journey. It empowers you with a realistic understanding of your financial capacity, helping you make informed decisions and find a home that truly fits your life.