How Much House Can I Afford?
Estimate a comfortable home-price range based on your income, debts, down payment and expected monthly housing costs.
This is an educational estimate, not a mortgage preapproval or lending decision.
Estimate My Price Range →Build Your Affordability Estimate
Results update as you change any input.
We don't attempt to determine whether a lender would consider specific income sources eligible — this is your own estimate.
Total Monthly Debt: $750
If you're not sure of a purchase price yet, enter a dollar amount — we'll calculate the implied down-payment percentage from the estimated price.
Enter your own rate assumption — we don't populate a "live" market rate.
Actual lender underwriting limits depend on loan program, credit profile, reserves, income documentation and other factors. These are not lender qualification standards.
Advanced: Taxes, Insurance, HOA, PMI & Custom Assumptions
PMI is only applied when the estimated down payment is below 20% of the purchase price.
Estimates are for educational purposes only · Not a lending decision
What Does "Afford" Mean?
There are at least three different numbers people mean when they say "afford":
A lender's maximum approval is not automatically the amount a buyer should spend.
The Formula This Calculator Uses
Your allowed monthly housing payment is the lower of two limits, then mortgage math converts that payment into a purchase price:
- Housing ratio limit = Gross Monthly Income × Housing Ratio % (28% for the Moderate scenario)
- Total debt limit = (Gross Monthly Income × Total DTI %) − Existing Monthly Debts (36% for Moderate)
That allowed payment, minus estimated taxes, insurance, HOA and PMI, leaves the Principal & Interest portion. We solve for loan amount using the standard mortgage formula M = P × [r(1+r)ⁿ] / [(1+r)ⁿ−1] in reverse, then add back your down payment to get the purchase price.
$10,000/mo gross income, $750/mo existing debts:
Housing ratio limit: $10,000 × 28% = $2,800
Total debt limit: ($10,000 × 36%) − $750 = $2,850
Lower of the two → allowed housing payment = $2,800/mo, which this calculator's mortgage math then converts into a maximum purchase price.
Your Mortgage Payment Isn't Your Entire Housing Budget
Also consider:
- Property taxes, insurance, HOA and mortgage insurance (already in the estimate above)
- Utilities
- Maintenance and repairs
- Furnishing
- Commuting changes
Frequently Asked Questions
Is this the same as a mortgage preapproval?
No. This is an educational estimate based on the assumptions you enter. A lender preapproval or prequalification involves verifying your income, credit, assets and debts, and depends on the specific loan program you choose.
Why does the calculator show a price range instead of one number?
The upper end reflects your selected Affordability Scenario. The lower end uses a more conservative housing ratio, since actual comfortable spending varies by household. Presenting a single "exact" number would overstate the precision of these assumptions.
What is the difference between my maximum qualification and what I should actually spend?
A lender's maximum approval is based on debt ratios alone — it doesn't know about your savings goals, other financial priorities, or how much cushion you want. Many buyers choose to spend meaningfully less than their maximum approval.
Does this include closing costs?
No. This estimate covers the ongoing monthly housing payment and the purchase price it supports — closing costs are a separate, one-time expense. Use the Cash-to-Close Calculator to estimate those.
What counts toward "monthly debt"?
Recurring debt obligations that show up on a credit report or are otherwise verifiable — car payments, student loans, minimum credit card payments, personal loans, and similar. It does not include everyday living expenses like groceries or utilities.
Mortgage Tools
Calculate Your Payment
Estimate your total monthly housing payment — principal, interest, taxes, insurance, HOA, and PMI.
Calculate Payment →Compare Loan Offers
Compare rate, APR, term, points, and fees across up to three loan offers side by side.
Compare Offers →Lock or Float?
See how a rate change would affect your payment and work through the lock-vs-float decision.
Explore Scenarios →Compare Renting vs Buying
See the financial outcome of buying vs. renting over any time horizon.
Compare Renting & Buying →Related Reports
Educational Use Only: Reaixo provides affordability estimates and scenario calculations for informational and educational purposes. Reaixo is not a lender, mortgage broker, financial advisor, or loan originator. Calculator results do not represent mortgage approval, underwriting, prequalification, or a loan offer. Actual affordability and loan eligibility depend on income verification, credit, debts, assets, reserves, property costs, loan program requirements, interest rates and lender underwriting. Consider your broader household budget and consult qualified professionals before making a home purchase decision.