Home affordability
How much house can I afford?
Estimate a home price that fits your income, debts and down payment — and see exactly what the monthly cost is made of.
Estimated home price within your targets
$417,181
That's a loan of about $357,181 plus your $60,000 down payment, for a total housing cost of about $2,800/month. Your limit is set by the 28% housing cost target.
A planning estimate, not a lender approval or guarantee of eligibility.
Monthly cost at $417,181
Your budget limits
How this is calculated
- Principal & interest: standard fixed-rate formula, payment = loan × r ÷ (1 − (1 + r)−n), where r is the monthly rate and n the number of monthly payments. At 0% interest it's simply loan ÷ n.
- Housing budget: the lower of (gross monthly income × housing target) and (gross monthly income × debt-to-income target − other monthly debts).
- Max price: subtract taxes, insurance, HOA and PMI from that budget, work out the loan the remainder can repay, then add your down payment.
- Taxes, insurance, HOA and PMI are the amounts you enter, held constant. Closing costs, maintenance, utilities, income taxes and savings goals are not included.
What "affordable" means here
A home is affordable in this calculator when its total monthly housing cost — mortgage principal and interest, property taxes, homeowners insurance, HOA fees and mortgage insurance — stays within two targets you set: a share of your gross income for housing, and a share for all your debts combined. It's a budgeting lens, not a lending decision.
Why the monthly cost matters more than the price
Two homes with the same price can have very different monthly costs once taxes, insurance and HOA dues are added. The interest rate matters too: a higher rate shrinks how much loan the same payment can support. That's why this calculator starts from what you can pay each month and works backward to a price.
Affordability is only half the question
Being able to afford a home doesn't mean buying beats renting for you. Once you have a price in mind, run it through the rent vs. buy calculator to compare long-term net worth, or read Should I rent or buy a house? for the main trade-offs.
Frequently asked questions
Is this how much a lender will approve me for?
No. This is a planning estimate based on targets you choose. Lenders look at your credit, assets, employment, loan program and more, and their limits vary by lender and borrower. Only a lender can tell you what you qualify for.
Why are the housing and debt-to-income targets set to 28% and 36%?
Those are common rules of thumb people use as a starting point for budgeting. They aren't rules every lender follows. Change them to match your comfort level — a lower target leaves more room for savings and surprises.
What counts as monthly debt payments?
Recurring minimum payments such as car loans, student loans, credit-card minimums and personal loans. Don't include your current rent, since it would be replaced by the new housing cost.
Where do I get property tax, insurance and PMI numbers?
Property taxes are often listed on home listings or your county's assessor website. Insurance and PMI depend on the home and your situation, so get quotes. We don't fill these in for you because guessing could be misleading.
Does this include closing costs or maintenance?
No. The estimate covers the monthly payment only. Budget separately for closing costs at purchase and for ongoing maintenance and repairs.
Should I buy at the maximum price shown?
Not necessarily. The figure is an upper limit within your targets, not a recommendation. Compare it with renting using our rent vs. buy calculator before deciding.
FinVeltrio is an educational tool. Results are estimates based on your inputs and are not financial, lending or tax advice. See our educational disclaimer.