Home Affordability Calculator — How Much House Can I Afford?
Estimate a home price that may fit your income, down payment, housing costs, and existing monthly debt payments. See how obligations such as credit cards, auto loans, and student loans can affect the amount available for housing.
This is a planning estimate, not a mortgage prequalification or lender approval. CreditCardTM is not acting as a lender or mortgage broker through this calculator. Real lender decisions depend on many factors beyond this model.
Your inputs
Results update automatically as you type.
Your housing-ratio assumption is currently the limiting factor. Existing debts are not the binding constraint under these inputs.
- Estimated affordable home price
- $395,974
- Estimated mortgage amount
- $355,974
- Down payment
- $40,000
- Mortgage rate
- 6.50%
- Term
- 30 years
- Max modeled monthly housing cost
- $2,800.00
- Estimated principal & interest
- $2,250.00
- Monthly property tax
- $400.00
- Monthly homeowners insurance
- $150.00
- Monthly HOA
- $0.00
- Existing monthly debt payments
- $500.00
- Total monthly obligations after housing
- $3,300.00
- Housing ratio used
- 28.0%
- Total DTI assumption used
- 36.0%
- Estimated resulting DTI at this housing cost
- 33.0%
Private mortgage insurance (PMI), if applicable, is not included in this estimate unless you enter a monthly PMI amount under Affordability assumptions. PMI can reduce affordability.
Reducing required monthly debt payments can increase the amount of monthly income available within this affordability model. Actual lender decisions may differ.
This is a mathematical scenario only. Do not close credit cards, stop paying creditors, drain savings, take on new loans, or manipulate credit utilization based on this number. Actual lender decisions depend on many factors beyond this model.
How much house can I afford?
Educationally, many planning models estimate an affordable home price by capping monthly housing costs at a share of your gross monthly income (often around 28%) and capping total monthly debt payments — including housing — at another share (often around 36%). This calculator applies both caps and picks whichever is tighter for your inputs.
How does debt affect home affordability?
Existing monthly debt payments — like credit-card minimums, auto loans, and student loans — reduce the amount of monthly income available for housing under the total-DTI model. That is why lowering required debt payments can raise the estimated home price in this calculator.
What is debt-to-income ratio (DTI)?
DTI compares your recurring monthly debt payments to your gross monthly income. This calculator uses two ratios: a housing-only ratio and a total-debt ratio (housing plus other debts). Both are transparent educational planning limits — not universal lender rules.
Do credit-card payments affect mortgage affordability?
Yes. Required minimum credit-card payments count as monthly debt obligations in most affordability models. Higher card balances generally mean higher minimum payments, which can reduce the amount available for housing under the DTI model.
What costs are included in this calculator?
- Mortgage principal and interest
- Monthly-equivalent property taxes
- Monthly-equivalent homeowners insurance
- Monthly HOA dues
- Existing monthly debt payments (compared under the total-DTI model)
- Optional monthly PMI amount (if you enter one)
What costs are NOT included?
- Closing costs and lender fees
- Moving expenses
- Ongoing maintenance and repairs
- Utilities
- PMI, unless explicitly entered
- Reserves and one-time expenses (appraisals, inspections)
Why might a lender give me a different number?
Mortgage affordability can depend on many factors beyond this calculator, including:
- Lender underwriting standards
- Loan program (conventional, FHA, VA, USDA, jumbo, and others)
- Credit history and profile
- Interest rate offered at the time of application
- Income verification and documentation
- Total debt obligations
- Property taxes, homeowners insurance, HOA
- PMI when applicable
- Closing costs and reserves
- Property characteristics and appraisal
- Other lender-specific requirements
Frequently asked questions
- How much house can I afford?
- Educationally, many planning models estimate an affordable home price by capping monthly housing costs at a share of your gross monthly income (often around 28%) and capping total monthly debt payments — including housing — at another share (often around 36%). This calculator lets you adjust those assumptions and see the resulting estimated home price. It is a planning estimate, not a lender decision.
- How does debt affect home affordability?
- Existing monthly debt payments (credit cards, auto loans, student loans, and other recurring obligations) reduce the amount of monthly income available for housing under the total debt-to-income model. Higher required debt payments generally lower the estimated home price in this calculator.
- What is debt-to-income ratio (DTI)?
- DTI compares your recurring monthly debt payments to your gross monthly income. The calculator uses two ratios: a housing-only ratio and a total-debt ratio (housing plus other debts). Both are transparent educational planning limits — not universal lender rules.
- Do credit-card payments affect mortgage affordability?
- Yes. Required minimum credit-card payments count as monthly debt obligations in most affordability models. Higher card balances generally mean higher minimum payments, which can reduce the amount available for housing under the DTI model.
- What costs are included in this calculator?
- Mortgage principal and interest, monthly-equivalent property taxes, monthly-equivalent homeowners insurance, and monthly HOA dues are all included in the modeled housing cost. Existing monthly debt payments are compared under the total-DTI model.
- What costs are NOT included?
- Closing costs, moving expenses, maintenance, utilities, and PMI (unless you enter it explicitly) are not part of the estimate. Real-world costs also include appraisals, inspections, and other one-time expenses.
- Why might a lender give me a different number?
- Actual lender decisions depend on many factors beyond this calculator, including underwriting standards, loan program, credit history, income verification, interest rate at the time of application, PMI when applicable, property characteristics, reserves, and lender-specific rules. This tool is for planning and education only.
Existing debts can affect how much house you may be able to afford under the DTI model. These related calculators can help you understand and reduce those debts.