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INTERACTIVE TOOL

Affordability Calculator

Before any big purchase, the real question is not whether a lender will approve you, but whether it fits your life. This calculator checks both. Choose a home, a car, or another purchase, then enter your income, expenses, debts, and savings. It builds your true monthly payment, tests it against the two ratios lenders use (28 percent for housing and 36 percent for total debt), confirms you have the cash to close, and shows what is genuinely left in your budget each month. It also solves for the most you could comfortably spend.

What are you buying?
Home price$400,000
Down payment / cash upfront$85,000

21% of the price, paid from savings

Mortgage rate6.50%
Loan term30 yrs

Borrowing $315,000

Gross monthly income (household)$9,500

Before tax. Combine both partners if buying together.

Existing monthly debt payments$650

Car loan, student loans, cards, anything with a monthly bill.

Monthly living expenses$3,200

Everyday costs, not counting debt payments or the new purchase.

Savings on hand$110,000

Need $97,000 up front (down payment plus costs).

WITHIN YOUR MEANS
Yes, this home looks affordable.

Total debt would be 33% of income (under the 36% guide), it leaves about $767 of breathing room each month, and about $13,000 in savings after you buy.

Debt-to-income (share of gross income)
Housing payment (front-end)26% / limit 28%
All debt payments (back-end)33% / limit 36%
Your month, dollar by dollar
Take-home income
$7,125
Living expenses
-$3,200
Existing debt
-$650
New housing payment
-$2,508
Left over
$767
Most you can afford
$420,837
Highest price that stays within the 28% / 36% limits.
Cash to buy
Covered
About $13,000 left in savings after you buy.
How it works

Lenders judge affordability with two ratios, both measured against your gross income. The front-end ratio is your housing cost alone, and the guide is 28%. The back-end ratio is every debt payment added together, and the guide is 36%, stretching to about 43% at most. This tool builds your monthly payment from the loan (for a home it adds property tax, insurance and any HOA to make the full PITI), checks both ratios, and then looks past the lender: it subtracts an estimate of tax to find your take-home, removes your living costs and existing debts, and shows what is genuinely left over. It also confirms you have the cash for the down payment and upfront costs, and solves for the largest price that still fits the limits. Educational only, not lending or financial advice.

Free and private: the numbers you enter stay in your browser. Educational only, not investment advice.

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