Buyer Affordability Calculator

Best for: Buyer

Find out how much house you can afford based on your income, debts, down payment, and target debt-to-income ratio.

What does this calculator do?

This calculator estimates your maximum affordable home price based on your annual income, monthly debts, available down payment, target debt-to-income (DTI) ratio, interest rate, and loan term.

Who should use it?

Homebuyers who want to know their price range before starting their home search, and renters evaluating whether homeownership is within reach.

What numbers do I need?

Annual income, monthly debt payments, available down payment, target DTI percentage, interest rate, loan term, annual property taxes, annual insurance, and monthly HOA.

What should I watch out for?

DTI limits vary by lender and loan type — conventional typically allows up to 45-50%, FHA up to 43-56%. What you qualify for may be more than you can comfortably afford. Factor in lifestyle and reserves.

Annual Income

Monthly Debts

Available Down Payment

Target DTI

Interest Rate

Loan Term

years

Annual Taxes

Annual Insurance

Monthly HOA

How It Works

1Enter your annual income and total monthly debt payments.
2Input your available down payment and target debt-to-income ratio.
3Add the interest rate, loan term, annual taxes, insurance, and HOA.
4The calculator determines your maximum housing payment by subtracting monthly debts from your total allowable debt payment.
5It then reverse-calculates the maximum loan amount and adds your down payment to estimate the affordable purchase price.

Who This Calculator Is For

This calculator is for first-time homebuyers, move-up buyers, and anyone who wants to understand their purchasing power before getting pre-approved for a mortgage.

Frequently Asked Questions

What is a good debt-to-income ratio?

A DTI of 36% or lower is generally considered healthy. Conventional loans may allow up to 45-50%, and FHA loans up to 43-56%. However, a lower DTI gives you more financial flexibility.

How much down payment do I need?

Conventional loans typically require 3-5% down, FHA loans 3.5%, and VA/USDA loans 0%. A 20% down payment eliminates PMI but is not required.

Does this calculator include taxes and insurance?

Yes, the calculator factors in property taxes, insurance, and HOA when determining your maximum affordable price.

Why is my affordable price lower than expected?

High monthly debts reduce your maximum housing payment. Paying down debts before buying can significantly increase your affordable price range.

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Have questions about your results?

Ask TradeDesk AI™ or send your scenario to James for a professional review.

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Calculator results are estimates for educational and informational purposes only. They are not financial, legal, tax, or lending advice and do not represent a loan approval or commitment to lend. Actual terms vary based on lender, borrower profile, documentation, market conditions, and underwriting.