Find out how much house you can afford. Use this tool to estimate your home buying power based on your income and monthly debt obligations. Use current mortgage rates as your interest rate input for an accurate buying-power estimate.
Home Buying Power Estimator
How to Use the Affordability Calculator
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Enter your annual income
Use your gross annual income (before taxes), including all reliable sources — your salary, regular bonuses you can count on, and a co-borrower's income if you'll buy together. Don't include income that's truly variable or one-time.
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Add your monthly debts
Sum up your minimum monthly payments on every recurring debt: car loan, student loans, credit cards (the minimum, not the balance), child support, alimony. Don't include things like utilities, insurance, or groceries — just debt payments lenders see on your credit report.
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Set your down payment and interest rate
Enter how much cash you have for a down payment and the mortgage rate you've been quoted (or current market rates if you're not yet shopping). A larger down payment and lower rate both increase your buying power.
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Compare your three affordability ranges
The calculator returns three figures: a Conservative range (28% DTI), an Affordable range (36% DTI), and a Stretch range (43% DTI). The lower the DTI, the more financial breathing room you keep for life's other costs.
Buying a Home in Your Area
Understanding home affordability is the first step toward successful homeownership in your state. Lenders evaluate your financial health primarily through your Debt-to-Income (DTI) ratio, which compares your monthly debt payments to your gross monthly income.
How much house can I afford in Your Area?
Financial experts typically recommend the 28/36 rule: your mortgage should cost no more than 28% of your gross income, and your total debt should stay below 36%. Our "Affordable" range is calculated using these standard conservative benchmarks. Try the mortgage calculator next to see what monthly payment you'd actually have at the price point you're considering.
What is a "Stretch" budget?
A "Stretch" budget assumes a DTI of up to 43%. While many loan programs in your state allow for this ratio, it leaves less room for unexpected expenses or home maintenance costs. Most planners advise against the stretch range unless you have a stable, growing income and minimal other financial obligations.
Does a larger down payment help?
Yes. A larger down payment increases your buying power dollar-for-dollar and may help you secure a lower interest rate, further increasing what you can afford. Putting 20% down also lets you avoid private mortgage insurance (PMI), which can add 0.3% to 1.5% of the loan amount per year to your monthly payment.
What other costs should I budget beyond the mortgage payment?
The big ones: property taxes (typically 1% to 2.5% of home value annually depending on location), homeowners insurance ($1,200 to $2,500 per year for an average home), and maintenance (budget 1% to 2% of home value per year). Combined, these often add 25% to 35% on top of your principal and interest payment. Plus closing costs upfront — another 2% to 5% of the loan amount.
How does my credit score affect what I can afford?
Significantly. The interest rate you qualify for varies by credit score tier, and even a 0.5% rate difference changes your monthly payment by roughly 6% on a 30-year loan. Borrowers with 760+ credit scores typically get the best rates; scores in the 620 to 680 range can pay 1% to 2% more in interest, which translates to roughly $200 to $400 less buying power per $1,000 of monthly payment.
Should I buy at the top of what I can afford?
Generally no. The amount a lender approves you for is what they think you can pay, not what's comfortable to live on. Buying at 28% DTI rather than 43% leaves $1,500+ per month for retirement savings, kids' activities, vacations, and unexpected costs — the things that turn a house payment into a livable life.
How can I increase my buying power?
Three levers, in order of impact: (1) reduce monthly debts by paying off auto loans or credit card balances before you apply, (2) raise your credit score — 740+ unlocks better rates, (3) save a larger down payment. Reading mortgage shopping tips before you apply also helps you compare lenders effectively, since rate differences of 0.25% can mean tens of thousands of dollars over 30 years.
