Home affordability planning calculator

Turn a few assumptions into transparent monthly planning ranges. This is not a lender approval, qualification decision, or personalized financial recommendation. Your inputs stay on this device.

Your planning assumptions

Income before taxes and deductions.

Exclude housing costs you want this tool to model.

A planning assumption, not an APR or available offer.

Include monthly ownership costs

Example estimate

Illustrative monthly planning bands

$2,500.00 to $3,200.00 per monthall-in housing budget at 25%, 28%, and 32% of gross monthly income

$10,000.00 gross monthly income

Educational planning estimate only. It is not a lender approval, loan offer, qualification decision, debt-to-income determination, tax advice, legal advice, or individualized financial advice.

Estimated purchase-price math excludes mortgage insurance, closing costs, maintenance, utilities, repairs, reserves, changing taxes or insurance, and actual lender underwriting.

How each planning band changes the math

Monthly housing budget includes the entered tax, insurance, and HOA assumptions. The purchase-price estimate adds your entered down payment to the calculated loan amount.

Income-share bandAll-in monthly housing budgetEstimated purchase priceCash after debt and housing
25% of gross monthly income$2,500.00$398,003.75$6,850.00
28% of gross monthly income$2,800.00$445,466.99$6,550.00
32% of gross monthly income$3,200.00$508,751.32$6,150.00

These bands are simple budgeting illustrations. They do not tell you what you should spend or what a lender will approve.

Rate stress at the 28% planning band

Holding your income, down payment, loan term, and entered ownership costs constant, this shows how a higher note-rate assumption changes the estimated purchase price. It is not a forecast, rate quote, approval, or recommendation.

Rate changeModeled note rateEstimated purchase priceChange from your entered rate
+1 percentage point7.50%$410,370.72-$35,096.27
+2 percentage points8.50%$380,423.92-$65,043.08

A negative change means the same 28% housing budget supports a lower estimated purchase price at that higher rate assumption.

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How the planning bands work

The tool starts with gross monthly income and models 25%, 28%, and 32% as all-in housing budgets. It subtracts the entered recurring ownership costs, converts the remaining principal-and-interest budget into a fixed-rate loan amount, then adds the entered down payment.

Cash after debt and housing is gross monthly income minus the entered monthly debt and the selected housing budget. It is not take-home pay or a complete household budget.

Review formulas and sources

Worked example

$120,000 annual income $80,000 down payment 6.50% note rate

Illustration only—not an approval, recommendation, or lending threshold.

Enter your own assumptions before relying on the planning ranges.

Home affordability planning questions

Will a lender use these exact percentages?

No. Lender underwriting varies by loan type, credit, assets, property, debt, location, reserves and other factors. These are transparent budgeting illustrations only.

Why are the ownership costs separate?

Property tax, insurance and HOA dues reduce the amount left for principal and interest. Keeping them visible prevents the purchase-price estimate from hiding recurring costs.

Does cash after debt and housing equal my disposable income?

No. It uses gross income and only the debt and housing assumptions entered. It does not account for taxes, living costs, savings, repairs or unexpected expenses.