Mortgage Affordability Calculator
Estimate a home price and mortgage loan that may fit your monthly housing budget using an interest rate, loan term, down payment, and estimated property costs.
Estimate a home budget
Enter a monthly housing budget and financing assumptions. The estimate separates principal and interest from taxes, insurance, and other monthly costs.
This is a payment estimate, not a lender pre-approval. It excludes closing costs, mortgage insurance where not included, maintenance, utilities, and underwriting rules.
How mortgage affordability is estimated
The calculator subtracts estimated monthly property taxes, homeowners insurance, and HOA charges from your total housing budget. The remaining amount is used to estimate the principal-and-interest payment that could support a loan over the selected term.
The loan estimate uses a standard fixed-rate amortization formula. Actual affordability also depends on income, existing debts, credit history, down payment requirements, property costs, and lender criteria. Rates and property taxes vary by location, so use local estimates and compare loan disclosures before making a decision.
Before using the estimated home price
- Use a realistic monthly budget that leaves room for food, transport, savings, and unexpected costs.
- Estimate property taxes, insurance, and association charges for the specific area and property type.
- Remember that a larger down payment may reduce the loan amount but also reduces cash available for closing costs and reserves.
The estimate is deliberately narrower than a full affordability assessment. It does not evaluate your income, other loan payments, credit score, employment stability, mortgage insurance, or lender-specific rules. Consider running a lower-budget scenario to test resilience if insurance, taxes, utilities, or interest rates rise. For adjustable-rate loans, the initial payment may not reflect future payments. Obtain written quotes and compare the total cost over the expected time you will own the property.
Frequently asked questions
Does this tell me how much a lender will approve?
No. A lender reviews income, debt-to-income ratio, credit, assets, and property-specific information. This calculator only models payment capacity from the values entered.
Are taxes and insurance included?
Only if you enter them in the monthly property-cost field. The calculator does not fetch local tax or insurance rates automatically.