HOME BUYING · ON YOUR DEVICE
Mortgage affordability calculator
Start from your income and debts, not from a listing price. See a realistic price range and monthly payment.
EXAMPLE ESTIMATE
Your estimate
Enter your values and select Calculate.
Estimates use your assumptions. Calculations use unrounded values; displayed figures are rounded.
HOW IT WORKS
A useful estimate starts with clear inputs.
- Step 1
Enter your gross income, existing monthly debts and the down payment you have saved.
- Step 2
Add the loan rate and term, local property tax and insurance, and the two ratio limits you want to test.
- Step 3
Calculate to see the highest home price your numbers support, with the monthly payment broken down.
A household earning 120,000 a year with no other debts has 10,000 a month, so a 28% housing limit allows about 2,800 a month for housing.
Calculation assumptions and limits
The budget is the lower of the housing limit and the total-debt limit minus your other debts. Property tax and insurance are included in that budget and the loan is sized to fit what remains. Lenders also look at credit score, savings, job history and loan type, and may use different limits. HOA fees, mortgage insurance and closing costs are excluded. This is a planning estimate, not a pre-approval.
Can I use this with my local currency?
Yes. All inputs in one calculation must use the same currency. The currency selector changes number formatting and labels; it does not look up exchange rates or convert your amounts. Local loan rules and products may calculate costs differently.
Are my numbers saved?
No. Your inputs and results stay in this page’s memory. Reloading or leaving clears them. Download the CSV or print the result if you want a copy.
Learn more: CFPB: what is a debt-to-income ratio?. WORDMIO calculates locally using the assumptions above.
Work out how much house your income can support
Most people start with a listing price and hope the payment fits. This calculator starts the other way: from your income, your existing monthly debts and the down payment you have saved. It then finds the highest home price that keeps your housing payment within the limits you set.
Lenders commonly look at two ratios: housing costs as a share of income, and all debt payments as a share of income. You choose both limits. The result includes property tax and insurance, so the monthly payment is closer to what you would really pay than a loan-only figure.
Free to use. No sign-up required.
How to use this tool
- Enter your gross income, other monthly debts and the down payment you have saved.
- Add the interest rate, term, property tax, insurance and the two ratio limits.
- Calculate to see the home price your budget supports and the monthly payment behind it.
A practical example
A household earning 120,000 a year has 10,000 a month, so a 28% housing limit allows about 2,800 a month for housing.
Before you finish
Lenders may use different limits and also review credit and savings. Leave room in your budget for repairs and other costs.
How lenders think about affordability
Lenders compare your monthly debt payments with your gross monthly income. The housing ratio looks only at the new home’s payment. The total debt ratio adds car loans, student loans and card minimums. A typical pair of limits is about 28% and 36%, although some programs allow more. This calculator uses the lower result of the two, so a high existing debt can reduce your budget even if your income is high.
Why property tax and insurance are in the budget
A loan-only payment understates the monthly cost of owning. Here, property tax and insurance sit inside your housing budget, so every extra pound or dollar of tax means a smaller loan. Check the tax rate for the area you want, because it can differ widely from one place to the next.
How the down payment changes the answer
A larger down payment lets the same monthly budget support a higher home price, because less has to be borrowed. Try several amounts. Then take the price to the mortgage calculator to see the full schedule and total interest.
Leave a safety margin
The highest price a ratio allows is not always the one that feels comfortable. Maintenance, repairs, utilities and changes in income are not part of the ratios. Many buyers aim for a payment below the limit. Lower the housing ratio here to see what a more cautious budget looks like.
Frequently asked questions
What are the front-end and back-end ratios?
The front-end ratio is your housing payment divided by gross income. The back-end ratio adds your other monthly debts. This calculator uses the stricter of the two limits you enter.
Which ratios should I use?
Many lenders use about 28% for housing and about 36% for total debt, but limits vary by lender and loan type. Try a lower housing ratio if you want more room in your budget.
Does this guarantee I will be approved?
No. Lenders also review credit history, savings, employment and the loan program. Treat the result as a planning range, not a pre-approval.
Why is the result lower than what a lender offered?
Lenders may allow higher ratios than the defaults here. A payment at the edge of the limit also leaves little room for repairs and other costs, so a lower figure can be safer.
What is not included?
HOA fees, private mortgage insurance, closing costs, moving costs and repairs are not included. Add them to your own budget separately.
Does the result include closing costs?
No. Closing costs and moving costs are paid in addition to the down payment, so keep some savings aside for them.