MortgageAffordabilityTools

Free Home Affordability Calculators

Affordability is a ratio, and the ratio is knowable

Four calculators that work the constraint from both ends: the price your income supports, the income a target price requires, where your debt-to-income ratio actually stands, and the cash a purchase needs on completion day.

Open the Mortgage Affordability CalculatorBrowse all 4 tools

Mortgage Affordability Calculator

Find the home price your income, debts and deposit support at a given debt-to-income limit.

Your numbers

Results update as you type. Nothing is sent anywhere.

Result

Maximum home price

$461,479

Maximum housing payment

$3,100

Maximum loan
$421,479
Principal and interest
$2,527
Property tax
$423
Insurance
$150
Gross monthly income
$10,000
Housing ratio
31%
Total debt ratio
36%

The price shown is the point where total monthly debt reaches the debt-to-income limit you entered. Lenders also review credit history, reserves, employment and property type.

Property tax is estimated from the tax rate you entered applied to the purchase price, not to an assessed value.

Read the full guide, worked examples and FAQ for this calculator →

Popular tools

The calculators visitors to MortgageAffordabilityTools open most often.

Lenders decide affordability by capping total monthly debt at a percentage of gross income. Everything else - the price, the loan size, the deposit - falls out of that constraint once property tax, insurance and existing debts are known.

These tools make the constraint visible and let you push on each input in turn. The most instructive experiment is usually clearing an existing debt: at a 36% limit a $400 car payment consumes roughly sixty thousand dollars of buying power, which is more than most people expect.

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Affordability

What income, debts and a deposit actually support.

Why use MortgageAffordabilityTools

Both directions of the same question

Start from income and get a price, or start from a price and get the income a lender would need to see. The second is more useful when a specific property is in view.

Tax and insurance included

Leaving them out overstates affordability substantially. Lenders count them, so these calculators do too.

Existing debts quantified

Every dollar of monthly debt removes a dollar of housing payment at the limit. Seeing what that is worth in purchase price changes decisions.

The cash, not just the deposit

Closing costs add two to five percent of the price on completion day. The total is what a purchase actually requires.

How it works

  1. Check where your debt-to-income ratio stands today.
  2. Run affordability from your income to get a realistic price range.
  3. For a specific property, run it backwards to see the income required.
  4. Confirm the cash needed at closing before assuming the price is reachable.

Frequently asked questions

What debt-to-income limit should I use?

Limits differ by loan programme and by lender, and a strong file can frequently exceed the standard figure. Ask your lender rather than relying on the default.

Should I borrow the maximum a lender allows?

Rarely. The maximum is where the lender stops, not where comfort ends. A payment set below it leaves margin for the repairs, maintenance and rate changes that follow a purchase.

Does clearing a debt really help that much?

Yes. At a 36% limit each dollar of monthly debt removes a dollar of housing payment, and each dollar of housing payment supports roughly $150 to $170 of purchase price at typical rates.

Is this an approval?

No. Lenders also assess credit history, employment stability, reserves and the property itself. The ratio is one gate among several.

Are you a lender?

No. This site does not originate loans, accept applications or pass your details to anyone. It is funded by advertising.