DIY Cost Tools
House Affordability Calculator
FINANCIAL CALCULATOR
Estimate a planning-level home price from your income, monthly debts, down payment, loan assumptions, property taxes, insurance, and chosen debt-to-income target.
How it works
The chosen debt-to-income target sets a maximum budget for all monthly debts. Existing debts are removed first; taxes and insurance are then removed from the housing budget to estimate the amount available for principal and interest.
Formula
Housing budget = gross monthly income × target DTI − monthly debts
Estimated price = present value of affordable loan payments + down payment
Example
Using the default inputs, the calculator estimates a monthly housing budget, subtracts taxes and insurance, converts the remaining payment into a 30-year loan amount, and adds the down payment.
Important limits
- This is a planning estimate, not a loan approval or financial advice.
- It excludes mortgage insurance, HOA dues, closing costs, maintenance, utilities, lender reserves, and location-specific rules unless you include them by lowering the target or increasing costs.
- Lenders consider credit, income documentation, loan type, assets, and their own underwriting requirements.
Frequently asked questions
What is DTI?
Debt-to-income ratio compares monthly debt obligations with gross monthly income. Choose a conservative target that fits your full budget.
Does the estimate include closing costs?
No. Keep closing costs and emergency savings separate from the down payment unless you intentionally adjust the inputs.
Sources and review notes
The Consumer Financial Protection Bureau offers homebuying tools and explains that buyers should consider the full monthly payment, upfront costs, and personal budget. Last reviewed September 30, 2026.