Mortgage affordability calculator

Where the budget goes

Principal & interest

—

Property tax

—

Home insurance

—

PMI

None

HOA

—

Down payment needed

—

Budget roughly — of cash at closing once typical closing costs are added — itemise them on the closing costs calculator.

Which ratio is binding

Housing costs are the constraint, so your existing debts are not holding you back — a lower rate or a bigger down payment is what moves the number.

Next steps

Once you have a price, run the full payment with escrow and equity growth on the main mortgage calculator, check whether buying beats renting at that price on the rent vs buy calculator, or see whether a low-down-payment programme fits on the FHA, VA and USDA calculators.

Common questions

How much house can I afford on my salary?

Most underwriters work backwards from two debt-to-income ratios: housing costs of about 28% of gross monthly income, and total debt payments of about 36%. Whichever of the two binds first sets your ceiling, which is why paying down a car loan often raises your budget more than a raise does.

Does the 28/36 rule still apply?

It is the conservative benchmark rather than a hard cut-off. Conventional loans routinely approve back-end ratios into the mid-40s and FHA can go higher with compensating factors such as reserves or a strong credit score. Use the sliders to see what a looser ratio buys you — and treat the extra as risk, not headroom.

Why is my budget lower than a lender's pre-approval?

A pre-approval measures what you can be lent, not what leaves you comfortable. It typically ignores retirement contributions, childcare, commuting and maintenance. Budgeting to the 28% front-end figure rather than the maximum approval is the usual advice.

What counts as monthly debt?

Minimum payments on car loans, student loans, personal loans, credit cards and any court-ordered support. Utilities, groceries, insurance premiums and phone bills are not counted in the ratio, even though they very much affect what you can actually afford.