Mortgage Affordability Calculator: How Much Home Can You Afford?
See your monthly mortgage payment, or estimate how much home you can afford based on income, debts, cash and financing assumptions you control.
Calculate Now →What would you like to calculate?
% of home price
$90,000 (20.0%)
Conventional PMI cancellation is estimated below. FHA/VA/USDA/Other mortgage insurance is modeled as a flat cost with no predicted removal date.
Not applicable — 20%+ down payment or a VA loan.
Full Cost of Ownership (optional — utilities, maintenance & other costs)
Extra Payments (optional — see how much sooner you could pay it off)
Estimates are for educational purposes only · Actual payment varies by lender
What Extra Payments Could Do
Loan Balance Over Time
Amortization Schedule
| Year | Beginning Balance | Principal | Interest | Ending Balance |
|---|---|---|---|---|
| 1 | $360,000 | $4,024 | $23,282 | $355,976 |
| 2 | $355,976 | $4,293 | $23,012 | $351,683 |
| 3 | $351,683 | $4,581 | $22,725 | $347,102 |
| 4 | $347,102 | $4,888 | $22,418 | $342,214 |
| 5 | $342,214 | $5,215 | $22,090 | $337,000 |
| 6 | $337,000 | $5,564 | $21,741 | $331,435 |
| 7 | $331,435 | $5,937 | $21,368 | $325,498 |
| 8 | $325,498 | $6,334 | $20,971 | $319,164 |
| 9 | $319,164 | $6,759 | $20,547 | $312,405 |
| 10 | $312,405 | $7,211 | $20,094 | $305,194 |
| 11 | $305,194 | $7,694 | $19,611 | $297,500 |
| 12 | $297,500 | $8,210 | $19,096 | $289,290 |
| 13 | $289,290 | $8,759 | $18,546 | $280,531 |
| 14 | $280,531 | $9,346 | $17,959 | $271,185 |
| 15 | $271,185 | $9,972 | $17,333 | $261,213 |
| 16 | $261,213 | $10,640 | $16,666 | $250,573 |
| 17 | $250,573 | $11,352 | $15,953 | $239,221 |
| 18 | $239,221 | $12,113 | $15,193 | $227,108 |
| 19 | $227,108 | $12,924 | $14,382 | $214,184 |
| 20 | $214,184 | $13,789 | $13,516 | $200,395 |
| 21 | $200,395 | $14,713 | $12,592 | $185,682 |
| 22 | $185,682 | $15,698 | $11,607 | $169,984 |
| 23 | $169,984 | $16,750 | $10,556 | $153,234 |
| 24 | $153,234 | $17,871 | $9,434 | $135,363 |
| 25 | $135,363 | $19,068 | $8,237 | $116,295 |
| 26 | $116,295 | $20,345 | $6,960 | $95,950 |
| 27 | $95,950 | $21,708 | $5,598 | $74,242 |
| 28 | $74,242 | $23,162 | $4,144 | $51,081 |
| 29 | $51,081 | $24,713 | $2,593 | $26,368 |
| 30 | $26,368 | $26,368 | $938 | $0 |
Educational Use Only: Reaixo is not a lender, mortgage broker, financial advisor, or loan originator. Calculations are estimates for informational and educational purposes only and may not include every cost associated with a mortgage. Rates, APRs, fees, taxes, insurance, mortgage insurance, eligibility, and loan terms vary by borrower, property, lender, loan program, and market conditions. Verify all figures and loan terms with a qualified lender and review your official Loan Estimate before making a financial decision.
Found a Home?
Enter the property address to estimate its payment, taxes, ownership costs, cash-to-close and other decision factors.
Analyze a Property →What Is Mortgage Affordability?
Affordability depends on more than the home price. It's shaped by your income, existing monthly debt, interest rate, loan term, down payment, property taxes, insurance, PMI, HOA fees, closing costs and your own personal monthly budget - not a single multiple of your income.
Factors That Affect Mortgage Affordability
How Interest Rates Affect Buying Power
Short answer: with the same monthly payment budget, a higher mortgage interest rate generally reduces the amount you can borrow, because more of each payment goes toward interest rather than principal.
How Your Down Payment Changes Affordability
A larger down payment reduces your loan amount and can eliminate PMI below the 20%-down threshold, but it requires more cash upfront - money that could otherwise go toward reserves, repairs, or other goals. There is no universally correct amount; see "What If I Put More Down?" in Affordability mode above for the effect on your own numbers.
How Debt Affects Mortgage Affordability
Recurring debt payments (auto loans, student loans, credit cards, personal loans, child support) reduce the total-debt-to-income limit directly - every dollar of monthly debt is a dollar less available for housing under that constraint. See "What If I Pay Off Debt First?" above.
Mortgage Qualification vs. Personal Affordability
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. This calculator always shows both the qualification-style limit and your own personal budget (when entered), using the lower one for the conservative figure rather than implying a lender's maximum is automatically the right amount to spend.
Should I Buy Now or Save More?
Saving longer can increase your down payment, reduce your loan amount, reduce or eliminate mortgage insurance, and increase cash reserves. Buying sooner avoids waiting, but the future path of home prices, interest rates, rent, insurance and taxes is uncertain either way - neither choice is universally correct.
Compare Buy Now vs Save More →
How to Calculate Mortgage Affordability
- Calculate gross monthly household income.
- Identify recurring monthly debts.
- Determine the monthly housing budget using your selected affordability assumptions.
- Estimate taxes, insurance, PMI and HOA.
- Determine how much remains for principal and interest.
- Convert that payment into a mortgage amount using the selected rate and term.
- Add the available down payment to estimate purchase-price capacity.
- Check cash-to-close and desired reserves.
- Compare qualification-style affordability with your personal monthly budget.
Frequently Asked Questions
How much mortgage can I afford?
It depends on your income, existing debts, down payment, interest rate, and the taxes/insurance/HOA/PMI on the specific property - not income alone. Use the "How Much Can I Afford?" mode above with your own numbers; there is no single answer that applies to everyone.
How much house can I afford with my salary?
Enter your gross income and existing debts in Affordability mode - the calculator applies a housing-ratio and total-debt-to-income limit (whichever is lower) to estimate a price range, then lets you compare that against your own personal monthly budget.
What factors determine mortgage affordability?
Income, existing monthly debt, down payment, interest rate, loan term, property taxes, homeowners insurance, PMI/mortgage insurance, HOA fees, closing costs, and how much cash you want to keep in reserve after closing.
Does a larger down payment increase affordability?
It can reduce your loan amount, monthly payment and (below 20% down) eliminate PMI - but it also requires more cash upfront. Use "What If I Put More Down?" to see the exact trade-off for your numbers; a bigger down payment is not automatically the right choice.
How does interest rate affect affordability?
With the same monthly payment budget, a higher mortgage rate generally reduces the amount you can borrow, because more of each payment goes toward interest rather than principal. See "How Rates Change Your Buying Power" above for your own numbers.
Does HOA count toward mortgage affordability?
Yes - HOA dues are part of your total monthly housing cost and reduce how much is left for principal and interest, which reduces your estimated affordable purchase price.
Do property taxes count toward DTI?
Yes - property taxes are part of the total monthly housing payment used in both the housing-ratio and total-debt-to-income calculations.
How does PMI affect affordability?
PMI (required on most loans below 20% down, except VA) adds to your monthly housing cost, which reduces the loan amount a given budget can support. VA loans never carry monthly PMI; FHA/USDA mortgage insurance follows different rules than conventional PMI.
How much cash should I keep after buying a house?
This calculator lets you set a "Keep As Reserves" amount so your estimated affordable price accounts for cash left over after closing, not just the maximum you could technically spend - there is no universal answer, it depends on your own risk tolerance and other obligations.
Should I pay off debt or increase my down payment?
It depends on your numbers. Use "What If I Pay Off Debt First?" and "What If I Put More Down?" side by side - paying off debt raises your allowed housing budget under debt-to-income limits, while a larger down payment reduces your loan amount and possibly PMI, at the cost of more upfront cash.
Can I afford a house if I have student loans?
Student loan payments count as existing monthly debt and reduce your total-debt-to-income limit, same as any other recurring debt - enter your actual payment in the Monthly Debts section to see the effect on your specific numbers.
What is the difference between mortgage qualification and personal affordability?
Qualification-style limits (housing ratio, total DTI) estimate what a lender might approve based on debt ratios alone. Personal affordability is what you are actually comfortable spending given your full budget and goals - often less than the qualification-style maximum. This calculator shows both.
How much income do I need for a $400,000 home?
Use "Can I Afford a $___ Home?" (the Test a Home Price panel) and enter $400,000 - it calculates the estimated minimum income needed at your selected down payment, rate, debts, taxes, insurance, HOA and affordability ratios, rather than a single number that applies regardless of your assumptions.
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Educational Use Only: Reaixo's mortgage affordability calculator provides educational estimates based on the information and assumptions entered. Results are not mortgage approvals, loan offers, underwriting decisions, or guarantees of financing. Actual eligibility, rates, payments, taxes, insurance, mortgage insurance, closing costs and loan terms vary by lender, loan program, property and borrower circumstances. Consult appropriate lending, financial, tax and real estate professionals before making a purchase decision.