Affordability Calculator
Turn income, monthly debts and a down payment into a price range to plan around, with ratios you can adjust.
Price range to plan around
Estimated home price
Your income ratio limits the payment more than your other debts do.
Change any figure to move the range
- $25,000 less down
- $1,241,000
- At your ratios
- $1,261,000
- $25,000 more down
- $1,282,000
| Item | Monthly | Share |
|---|---|---|
| Principal & interest | $5,386 | 77% |
| Property tax | $1,314 | 19% |
| Home insurance | $294 | 4% |
| HOA dues | $0 | 0% |
| Total | $6,993 | 100% |
| Monthly housing budget | $7,000 |
|---|---|
| Loan amount | $861,000 |
| Housing share of income | 28% |
| Housing + debts share | 32.8% |
An indicative figure for planning. Not a lender quote and not an offer of credit. Sidney Manzo, CA DRE #01108914, licensed in California.
RE/MAX Dream Properties (ASLG Inc), CA DRE #02142193
How this works
From income to a price range
The tool works out a monthly housing budget two ways: a share of gross monthly income for housing alone, and a share for housing plus your other debts. It uses the smaller of the two.
It then finds the highest price whose principal and interest, property tax, home insurance (0.28% of the price a year) and HOA dues fit that budget, rounded down to the nearest $1,000.
The starting ratios, 28% and 36%, are planning ratios you can adjust. Each lender sets its own limits, so a lender may approve more or less than this figure.
The range bar shows the price at your ratios and what it would be with $25,000 less or more down. The button under the details opens the mortgage calculator with this price, down payment, rate, term, tax, insurance and HOA filled in.
Questions
How this estimate works
Is this how much a lender will approve?
No. It is a planning figure from the ratios you choose. Each lender sets its own limits and looks at credit, assets, the loan type and more.
Which debts should I include?
Monthly payments that show on a credit report or that you owe each month, such as car loans, student loans, card minimums and support payments. Leave out utilities and groceries.
Why does the price change when I change the rate?
A higher rate makes the same loan cost more each month, so less of the price fits the same budget.