Mortgage affordability calculator
Enter your own assumptions below. The default interest rate is 7.03%, Freddie Mac's national average for a 30-year fixed-rate mortgage on September 24, 2026. Your actual rate and lender guidelines can be different.
Planning estimate only. It is not a preapproval, loan offer or underwriting decision.
The calculator uses your target total debt-to-income ratio as a planning limit. Fannie Mae's manual underwriting guidance, for example, generally uses a 36% maximum total DTI and allows up to 45% in certain cases with additional requirements. Other programs and lenders can use different rules, so keep the DTI field editable rather than treating one percentage as universal.
How this mortgage affordability calculator works
The calculator first estimates the maximum amount of your gross monthly income that you want devoted to total monthly debt. It subtracts your existing debt payments, then subtracts recurring housing costs you entered—property taxes, homeowners insurance, HOA dues and mortgage insurance. The amount left is the estimated monthly budget for mortgage principal and interest.
That principal-and-interest budget is converted into a maximum loan amount using the mortgage rate and term you selected. Your down payment is then added to estimate a home-price range.
Which income should you enter?
Use gross income before taxes and other payroll deductions for the calculator. CFPB and Fannie Mae describe debt-to-income calculations using gross monthly income. For a household with more than one borrower, include only income you reasonably expect a lender to consider and that you are prepared to document.
Variable pay, bonuses, commissions, self-employment income and other non-salary income may require additional documentation or averaging under lender rules. The calculator does not determine whether a particular income source is eligible for underwriting.
How debt-to-income ratio changes mortgage affordability
Your debt-to-income ratio (DTI) is your monthly debt payments divided by gross monthly income. Existing obligations can reduce the amount available for a future mortgage payment even when two buyers earn the same salary.
| Gross annual income | Monthly debts before housing | 36% total-DTI budget left for housing |
|---|---|---|
| $90,000 | $500 | $2,200/mo |
| $120,000 | $700 | $2,900/mo |
| $150,000 | $1,200 | $3,300/mo |
These figures are examples, not approval thresholds. Different loan programs and automated underwriting systems can produce different acceptable ratios based on the full application.
Include the full monthly housing cost
A common affordability mistake is to budget only for principal and interest. CFPB guidance emphasizes that the monthly cost of owning a home can also include property taxes, homeowners insurance and mortgage insurance. HOA or condo dues may be another recurring expense.
| Cost | How to enter it | Why it matters |
|---|---|---|
| Property taxes | Annual estimate | Highly local and may change after purchase |
| Homeowners insurance | Annual premium estimate | Varies by property, coverage and location |
| HOA / condo dues | Monthly charge | Reduces room available for mortgage P&I |
| Mortgage insurance | Monthly lender estimate | May apply depending on loan type and equity |
Mortgage rates can change your buying power
Interest rate is one of the strongest inputs in a mortgage affordability calculator. With the same monthly principal-and-interest budget, a higher rate supports a smaller loan amount and a lower rate supports a larger one.
Freddie Mac reported a national average 7.03% 30-year fixed rate for the week of September 24, 2026. That survey is a market reference—not a personalized quote. Credit profile, points, loan type, occupancy, down payment and lender pricing can all change the rate you receive.
| 30-year rate | Approx. loan supported by $2,250 P&I | Difference vs. 7.03% |
|---|---|---|
| 6.00% | $375,300 | +$38,100 |
| 7.03% | $337,200 | Baseline |
| 8.00% | $306,600 | −$30,600 |
How the down payment affects what you can afford
A larger down payment reduces the amount you need to borrow and can increase the home price that fits the same monthly principal-and-interest budget. It may also change mortgage-insurance costs. CFPB notes that borrowers putting less than 20% down on some conventional mortgages may need private mortgage insurance.
Do not put every available dollar into the down payment. Fannie Mae's consumer guidance notes that buyers should also plan for closing costs, moving expenses and unexpected ownership costs. Keep cash reserves in the affordability decision.
15-year vs. 30-year affordability
A 30-year mortgage spreads repayment across more monthly payments, usually lowering the required principal-and-interest payment for a given loan amount. A 15-year loan usually requires a higher monthly payment but can reduce total interest if its rate and other terms are favorable.
For affordability, changing the term can materially change the maximum loan supported by the same payment budget. Use the calculator's term field to compare 15-, 20- and 30-year scenarios instead of assuming the lowest monthly payment is automatically the best financial fit.
Affordable to the lender vs. comfortable for you
CFPB explicitly distinguishes the amount a lender may be willing to lend from the amount that fits comfortably in your life. A lender does not know every household priority. Childcare, retirement saving, travel, medical costs, utilities and future repairs can all make a technically qualifying payment feel too high.
A practical stress test is to lower the calculator's DTI target, raise the assumed interest rate slightly, and increase estimated taxes or insurance. If the home still fits, the budget has more resilience.
Mortgage affordability examples
The examples below use a 30-year fixed mortgage at 7.03%, a 36% total-DTI planning target, and assume the listed taxes and insurance. They are illustrations rather than lender quotes.
| Annual income | Monthly debts | Other housing costs | P&I budget | Approx. loan |
|---|---|---|---|---|
| $90,000 | $500 | $550/mo | $1,650/mo | ≈ $247,300 |
| $120,000 | $700 | $650/mo | $2,250/mo | ≈ $337,200 |
| $150,000 | $1,200 | $800/mo | $2,500/mo | ≈ $374,600 |
Add your down payment to the estimated loan amount to get a rough home-price range, then subtract any cash you need to reserve for closing costs and emergency savings from the amount available upfront.
Mortgage affordability checklist before you shop
- Use gross, documentable household income.
- Include recurring monthly debt payments rather than guessing.
- Estimate property taxes for the actual area and price range you are considering.
- Get a realistic homeowners-insurance estimate, especially in higher-risk areas.
- Add HOA or condo dues when applicable.
- Include mortgage insurance when your loan structure may require it.
- Run at least two interest-rate scenarios.
- Keep a separate cash reserve for closing costs, moving and repairs.
- Compare your comfortable payment with lender preapproval rather than treating them as the same number.
Sources and methodology
This guide uses consumer guidance and underwriting references from the Consumer Financial Protection Bureau, the Fannie Mae Mortgage Affordability Calculator, Fannie Mae's Debt-to-Income Ratios guidance, and Freddie Mac's Primary Mortgage Market Survey. The calculator is an educational estimate and does not reproduce any lender's underwriting engine.
