How to use this calculator
- Enter your household income before tax and your other monthly debt payments.
- Set the debt-to-income limit, mortgage rate and term.
- Enter your down payment and local property tax, insurance and PMI.
Frequently asked questions
How much house can I afford on my salary?
Lenders compare all your monthly debt payments, including the new mortgage, with your gross income. On $110,000 a year with $500 of other debt payments and a 36% limit, $2,800 a month is available for housing — enough for a home of about $399,037 with $60,000 down at 6.5%.
How much does a higher mortgage rate cut what I can afford?
A lot. One percentage point more — 7.5% instead of 6.5% — lowers the price you can afford from $399,037 to $371,693 in the example.
What counts toward the debt-to-income ratio?
Your new principal and interest, property tax, homeowners insurance and any PMI or HOA dues, plus car loans, student loans and minimum card payments. Paying off the $500 in other monthly payments would raise the example price to $464,363.
Do I need 20% down?
No, but under 20% down a conventional loan usually adds private mortgage insurance until you build enough equity. If the example lender required 20% down, the $60,000 down payment would cap the price at $300,000.
Does this include closing costs?
No. Closing costs are paid in cash at closing, on top of the down payment, so keep that money separate from the amount you enter here.