Free Tool
Mortgage Affordability Calculator
Estimate how much house you can afford from your income, debts, down payment and interest rate, using housing and total debt-to-income limits you can adjust.
Home price these limits support
$301,048
Loan amount
$261,048
Max monthly housing cost
$2,100
Principal and interest part
$1,650
Your limit is set by the housing ratio. The down payment is 13.3% of the price. Below 20%, many lenders add mortgage insurance, which lowers what you can borrow; add it to the monthly costs above.
How the interest rate changes the answer
| Rate | Loan you could carry | Home price |
|---|---|---|
| 5.50% | $290,601 | $330,601 |
| 6.00% | $275,206 | $315,206 |
| 6.50% (yours) | $261,048 | $301,048 |
| 7.00% | $248,007 | $288,007 |
| 7.50% | $235,979 | $275,979 |
Check: a loan of $261,048 at 6.5% over 30 years costs $1,650 a month in principal and interest.
Estimates are for general education only and are not financial, insurance or tax advice. Calculations run in your browser; nothing you enter is sent to our servers.
What the calculator does
Lenders and budget planners often judge a mortgage by two ratios. The housing ratio compares your monthly housing cost with your monthly income before tax. The total debt ratio adds your other monthly debt payments. This tool applies both limits, takes the lower of the two results as your maximum monthly housing cost, subtracts property tax and insurance, and converts what is left into the loan it can repay at your interest rate and term. Adding the down payment gives a home price.
About the 28% and 36% defaults
The defaults of 28% for housing and 36% for total debt are a long-used rule of thumb, not a law. Real lenders use their own limits, which vary by country, by loan type and by your credit history and savings, and some allow noticeably higher ratios. You can change both limits to match what a lender has told you, or lower them if you want more room in your budget.
Why the rate matters so much
The same monthly payment supports a smaller loan when rates are higher. The table shows the loan and home price at your rate and at rates half a point and one point above and below it. This is useful when comparing a fixed rate with a variable or adjustable one, because a variable rate can rise after you buy.
What the tool leaves out
A limit is the most a formula allows, not an amount you should borrow. The tool does not include closing costs, moving and repair costs, mortgage insurance unless you add it to the monthly costs, or income tax. It does not check your credit score or the rules of any loan programme. It also uses income before tax, so look at your actual take-home pay and spending before you decide. For a firm figure, ask a lender for a written pre-approval.
This is an educational estimate, not advice. For the full explanation, read our guide: How Much House Can You Afford?.