CalcPenny

Mortgage Affordability Calculator

Estimate the home price and loan you can afford from your income, debts, down payment and rate.

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Home price you can afford
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Max loan amount—
Monthly payment (PITI)—
Principal + interest—
Tax + insurance / mo—

Monthly payment breakdown

Estimates only. CalcPenny is not a lender, broker or financial adviser and this is not financial advice. Verify figures before making decisions.

What "affordable" really means

Affordability is driven by your monthly cash flow, not just the sticker price. Lenders look at your debt-to-income ratio — the share of your gross monthly income that goes to all debt payments. This tool starts from that ceiling, removes your existing debts and the monthly cost of property tax and insurance, and turns what remains into the biggest loan you can comfortably carry.

How to stretch (or play it safe)

A larger down payment lifts your affordable price one-for-one. A lower interest rate or longer term reduces the monthly payment, increasing the loan you qualify for — but a longer term means far more interest over time. For breathing room, set the DTI nearer 28% than 43%.

Once you've bought, the Mortgage Payoff Calculator shows how much sooner you could be debt-free by adding extra payments — and if you're still weighing the decision, see Rent vs Buy for the full cost comparison.

Frequently asked questions

How much house can I afford?
Lenders cap your total monthly debt at a percentage of your gross income — the debt-to-income (DTI) ratio. This tool takes your income and that limit, subtracts existing debts, taxes and insurance, and converts what is left into the largest loan (and home price) you can support.
What DTI ratio should I use?
A conservative front-end target is around 28–36% of gross income for all debt. Some loan programs allow up to 43% or more, but borrowing to the maximum leaves little room for emergencies.
Why include property tax and insurance?
Your monthly housing cost is more than principal and interest — it also includes property tax and homeowners insurance (together "PITI"). Ignoring them overstates how much loan you can afford.
Is pre-approval different from this estimate?
Yes. This is a planning estimate. A lender’s pre-approval also weighs your credit score, employment history, assets and the specific loan program, so your real number may differ.

Last updated: June 2026

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