Free calculatorMost helpful for Spenders
Home Affordability Calculator
Estimate a home price and mortgage payment that fit your income and debts.
Home you can afford
Gross annual income
$75,000
Other monthly debt payments
$250
Down payment
$20,000
Mortgage rate
6.5%
Estimated home price
$296,869
About $1,750 a month for principal and interest on a 30-year loan, using the 28/36 rule. Taxes and insurance are extra.
What the price is made of
Your down payment plus the loan your monthly payment can carry.
- Down payment$20,000 (7%)
- Loan$276,869 (93%)
Estimated home price$296,869
Which limit sets your budget
The 28/36 rule caps housing at 28% of gross monthly income and all debt, housing included, at 36%. The lower one wins. For you that is the 28% housing limit.
- Principal and interest
- $1,750/mo
- 30-year loan
- Limit that binds
- 28% housing
- Housing room at 28%
- $1,750/mo
- 28% of gross monthly income
- Housing room at 36%
- $2,000/mo
- 36% of gross monthly income, minus $250 of other debt
What if rates move
Same monthly payment, different rate. A lower rate lets the same payment carry a bigger loan.
| Rate | Home price | Monthly payment |
|---|---|---|
| 5.5% | $328,213 | $1,750 |
| 6.5%You | $296,869 | $1,750 |
| 7.5% | $270,281 | $1,750 |
| 8.5% | $247,594 | $1,750 |
How the loan pays down
Early payments are mostly interest. The balance drops faster in later years.
See it year by year
| Year | Interest paid | Principal paid | Balance |
|---|---|---|---|
| Year 1 | $17,905 | $3,095 | $273,774 |
| Year 2 | $17,698 | $3,302 | $270,472 |
| Year 3 | $17,477 | $3,523 | $266,949 |
| Year 4 | $17,241 | $3,759 | $263,190 |
| Year 5 | $16,989 | $4,011 | $259,180 |
| Year 6 | $16,721 | $4,279 | $254,900 |
| Year 7 | $16,434 | $4,566 | $250,334 |
| Year 8 | $16,128 | $4,872 | $245,463 |
| Year 9 | $15,802 | $5,198 | $240,265 |
| Year 10 | $15,454 | $5,546 | $234,719 |
| Year 11 | $15,082 | $5,918 | $228,801 |
| Year 12 | $14,686 | $6,314 | $222,487 |
| Year 13 | $14,263 | $6,737 | $215,751 |
| Year 14 | $13,812 | $7,188 | $208,563 |
| Year 15 | $13,331 | $7,669 | $200,894 |
| Year 16 | $12,817 | $8,183 | $192,711 |
| Year 17 | $12,269 | $8,731 | $183,980 |
| Year 18 | $11,684 | $9,316 | $174,664 |
| Year 19 | $11,061 | $9,939 | $164,725 |
| Year 20 | $10,395 | $10,605 | $154,120 |
| Year 21 | $9,685 | $11,315 | $142,805 |
| Year 22 | $8,927 | $12,073 | $130,731 |
| Year 23 | $8,118 | $12,882 | $117,850 |
| Year 24 | $7,256 | $13,744 | $104,105 |
| Year 25 | $6,335 | $14,665 | $89,440 |
| Year 26 | $5,353 | $15,647 | $73,793 |
| Year 27 | $4,305 | $16,695 | $57,098 |
| Year 28 | $3,187 | $17,813 | $39,285 |
| Year 29 | $1,994 | $19,006 | $20,279 |
| Year 30 | $721 | $20,279 | $0 |
Your next step
Same numbers, different next move
Two people can get this exact result and need totally different first steps. Your Money Type tells you which one is yours.
Strategist“My plan works. I just want it to grow faster.”
Spender“The money is gone before I think about it.”
Saver“I save it. Then it just sits there.”
Scrambler“Every payday I’m guessing what gets paid first.”
How It Works
- 01
Enter your gross annual income and other monthly debt payments.
- 02
Add your down payment and a mortgage rate.
- 03
See an estimated home price and monthly payment that fit.
The 4 Money Types
The Math Is the Same. Your Next Move Isn't.
Spenders, Savers, Scramblers, and Strategists each need a different first fix. The free quiz tells you which type you are, so you know what to do with this number.
Common questions
A common guideline: keep housing around 28% of gross monthly income, and keep all debt payments around 36%. Lenders can be stricter.
No. The payment shown is principal and interest. Property tax, insurance, and HOA fees would lower the price you can comfortably buy.
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