Using the House Affordability Calculator
Enter a realistic allowance for property tax, insurance and association charges before calculating. A price estimate based entirely on mortgage payments can leave too little room for the rest of owning a home.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Gross monthly income
- 6000
- Housing budget (% of income)
- 28
- Monthly taxes, insurance and HOA
- 400
- Available down payment
- 40000
- Annual rate (%)
- 6
- Mortgage term (months)
- 360
Example result
- Estimated home price
- 253,493.27
- Maximum loan
- 213,493.27
- Monthly principal and interest
- 1,280
Method and assumptions
Converts your housing budget into an amortizing loan principal. Does not evaluate credit, other debts, mortgage insurance or loan eligibility.
Build a complete housing comparison
A housing calculation usually answers one part of a larger decision. Keep the purchase price, financing, recurring ownership expenses and eventual sale assumptions in separate lines of your budget. This makes it easier to spot costs omitted by a particular model. When comparing alternatives, use the same time horizon and currency for both.
Common question
Does a larger down payment raise the estimated price?
Yes, because the down payment is added to the loan amount supported by the monthly budget. It does not increase the income available for ongoing payments.
Guide updated .