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Mortgage Affordability Calculator

Estimate how much house you can afford based on your income or a comfortable monthly mortgage payment.

Many home buyers search for answers like “How much house can I afford if I make $70,000 a year?” or “What mortgage can I afford with a $2,000 monthly payment?” This calculator helps you estimate those numbers instantly.

Budget-Based Affordability Calculator

Calculate how much home you can afford based on a fixed monthly budget for housing costs.

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Affordable Home Price Estimate

$4,532,611

Includes $3,626,089 loan and $906,522 down payment.

Financial Summary

Loan Amount$3,626,089
Home Price$4,532,611
Down Payment$906,522
Est. Closing Costs (3%)$135,978
Total Cash Needed$1,042,501

Monthly & Annual Costs

Monthly Mortgage (P&I)$21,780
Annual Property Tax$67,989
Annual Insurance$22,663
Annual Maintenance$67,989
Total monthly cost$35,000

Mortgage Approval Guidelines

This calculator uses common U.S. mortgage guidelines such as the 28/36 debt-to-income rule. In addition to DTI ratios, lenders typically evaluate affordability based on your credit score,income stability, and the size of your down payment.

How to Use the Affordability Calculator

Income-Based Calculator

Use this tab to see what a lender will approve based on your salary and current debts.

  1. Enter your annual income (gross): Your total household income before taxes.
  2. Add monthly debts: Include car loans, credit card minimums, and student loans to compute your debt-to-income (DTI) ratio.
  3. Specify down payment & inputs: Modify the down payment percentage, interest rate, and property taxes.
  4. Review maximum home price: The calculator applies the U.S. 28/36 rule (or a custom DTI) to estimate your loan amount.

Budget-Based Calculator

Use this tab to work backward from a monthly payment you are comfortable with.

  1. Enter your target monthly budget: The total amount you wish to spend each month on housing.
  2. Include taxes and insurance: Decide if your budget covers just Principal & Interest, or total PITI (taxes, insurance, HOA).
  3. Adjust loan terms: Enter your down payment and expected interest rate.
  4. Review affordable home price: We reverse-calculate the exact property value that matches your comfort zone.

Example Scenarios

Example: Salary-Based Scenario

If you earn $85,000 a year and have $300/month in debt, our calculator applies the standard 28/36 rule. Assuming a 20% down payment and 6% interest rate:

  • Max Monthly Payment~$1,983
  • Affordable Home Price$280,000 - $310,000

Example: Budget-Based Scenario

If you want to spend $2,000 per month total on housing (PITI) to leave room for lifestyle expenses, and you have $40,000 saved for a down payment (roughly 10% - 15%):

  • Target Monthly Budget$2,000
  • Affordable Home Price~$260,000

Mortgage Affordability Tips

Save at least 20% for a down payment to avoid Private Mortgage Insurance (PMI) and lower your monthly payment.

Get pre-approved before house hunting. It shows sellers you are serious and gives you a firm budget.

Improve your credit score. Even a slight increase can secure lower interest rates and save thousands over the life of the loan.

Consider all homeownership costs. Property taxes, homeowners insurance, maintenance, and HOA fees will quickly add to your monthly PITI.

Pay down existing debts. Lowering credit card balances or car loans improves your debt-to-income (DTI) ratio.

Don't stretch to your "approval max." Provide yourself a safety buffer for emergency house repairs and lifestyle expenses.

Frequently Asked Questions

Can I afford a $400k house if I make $70,000 a year?

If you earn $70,000 per year, the home price you can afford depends on your debts, down payment, and mortgage interest rate. Using the common 28/36 debt-to-income rule, many lenders recommend spending no more than about 28% of your gross monthly income on housing. For a $70,000 salary, this could translate to a home price range of roughly $250,000 to $350,000 depending on your financial situation. Use our mortgage affordability calculator above to estimate your maximum home price.

How much house can I afford if I make $100,000 a year?

With a $100,000 annual salary, your gross monthly income is $8,333. Adhering to the 28% housing expense rule, your maximum monthly PITI (Principal, Interest, Taxes, and Insurance) would be approximately $2,333. Depending on your down payment and current interest rates, this typically supports a home purchase price between $350,000 and $450,000, assuming minimal other debts.

What is debt-to-income (DTI) ratio?

Your debt-to-income ratio compares your gross monthly income against your monthly debt obligations. A lower DTI indicates you have a good balance between debt and income. The standard 28/36 rule dictates that total debt (including your new mortgage) shouldn't exceed 36% of your gross income.

How does down payment affect affordability?

A higher down payment reduces the principal loan amount, meaning lower monthly payments and less interest paid over time. If you can put down 20%, you will also avoid paying Private Mortgage Insurance (PMI).

How do credit scores impact mortgage approval?

Lenders use credit scores to assess risk. A high credit score (740+) typically qualifies you for the lowest interest rates available. This directly increases how much house you can afford by keeping your monthly interest costs down.