Affordability Calculator
Use this page to estimate a comfortable home price range and a monthly payment breakdown based on your income, monthly debts, down payment, and a few common cost assumptions. This is built for clarity, not pressure. You can fine tune the inputs to match your real world numbers.
Calculator
Annual income
$20,000$600,000
Example: $120,000
Use gross income before taxes. If two borrowers, you can enter combined income for a quick estimate.
Total monthly debts
$0$10,000
Examples: auto, student loan, minimum credit cardPer month
This is monthly payments you already carry. It helps estimate how much room is left for housing.
Down payment
$0$1,000,000
Dollar amount you plan to bring
Higher down payment can reduce the loan size, and may reduce or remove PMI depending on loan rules.
Interest rate
2.00%10.00%
Annual percentage ratePercent
Rates vary by credit profile, down payment, loan type, and day to day market movement. Use a number your lender is quoting you.
Loan term
Shorter term usually higher paymentYears
Shorter terms pay off faster with less total interest, but monthly payment usually increases.
Affordability style
Targets a practical payment levelRule of thumb
This sets a guideline for max housing payment using common debt to income guardrails. Many lenders can approve more than what feels comfortable, so choose the style that matches your budget preferences.
Property tax rate
Estimated annual property tax ratePercent
This is a general estimate used for planning. Actual tax rate depends on county, local bonds, and special assessments.
Home insurance
Estimated annual homeowners insurancePer year
Insurance cost varies a lot by home type and coverage. Use a quote if you have one, otherwise keep this as a planning estimate.
Include taxes and insurance
Include PMI if needed
Include HOA dues
PMI rate
Estimated annual PMI percent of loanPercent
PMI often applies when down payment is below 20 percent. The rate depends on credit score, loan type, and down payment size. This is a planning estimate.
Max total debt to income
Total monthly debt plus housingPercent
A common planning cap is around the low 40s. Some programs allow more, but comfort level matters too.
Home price
Purchase priceDollar
Enter a price to estimate a monthly payment. This is useful when you already have a listing in mind.
Down payment
$0$1,000,000
Dollar amount
This affects loan size and may affect PMI. Use the amount you expect to bring.
Interest rate
2.00%10.00%
Annual percentage ratePercent
Use a lender quote if you have one. Small changes in rate can move payment a lot.
Loan term
YearsTerm
Shorter term usually higher payment but less total interest.
Include taxes and insurance
Include PMI if needed
Include HOA dues
Property tax rate
Annual percentPercent
Planning estimate. Actual taxes depend on location and special assessments.
Home insurance
Annual dollarsPer year
Use a quote when possible. Otherwise keep as a planning estimate.
PMI rate
Annual percent of loanPercent
PMI often applies when down payment is below 20 percent. This is a planning estimate.
Your estimate
Home price mode
You can estimate a comfortable home price up to
$0
Based on your inputs and selected style, this is the price where the monthly total stays within the target payment.
Target housing: $0 per month
Max total debt to income: 43%
Down payment used: $0
Estimated monthly breakdown
Principal and interest
$0
Property taxes
$0
Home insurance
$0
PMI
$0
HOA dues
$0
Total housing cost
$0
Quick reality check
If the number feels higher than your comfort level, reduce the style to Conservative, raise monthly debts, or add HOA dues. If it feels too low, remember this tool is aiming for comfort and stability, not maximum approval.
If the number feels higher than your comfort level, reduce the style to Conservative, raise monthly debts, or add HOA dues. If it feels too low, remember this tool is aiming for comfort and stability, not maximum approval.
Calculation disclaimer: This calculator is for educational planning only. It uses the inputs you provide plus simple assumptions for taxes, insurance, PMI, and loan math. Actual results can vary due to lender rules, credit profile, loan program, rate changes, property taxes, insurance quotes, HOA, and other costs. Harv Balu is a REALTOR, not a lender and not a loan officer, and this page does not provide lending advice or a loan offer. For loan options, approvals, and exact payment figures, please contact your bank, lender, or loan officer and confirm taxes and insurance with the appropriate providers.
Factors that impact affordability
Affordability is driven by your income, your monthly debts, and your down payment. The interest rate you lock matters a lot because it changes the monthly payment for the same loan size. Ongoing costs also matter, especially property taxes, insurance, and HOA dues. The best plan is to aim for a payment you can keep comfortably even when life gets busy.
- Income sets the ceiling for a comfortable monthly housing budget.
- Monthly debts reduce the room left for housing.
- Down payment affects loan size and may affect PMI.
- Interest rate changes payment quickly, even when price is the same.
- Property taxes vary by location and special assessments.
- Insurance varies by home, coverage, and carrier requirements.
- HOA dues can be meaningful in many Bay Area communities.
- Your comfort level matters, not just lender approval.
How to calculate affordability
This calculator follows a simple idea. Start with gross monthly income, apply a reasonable housing budget, then make sure total debt plus housing stays under a total debt to income cap. After that, it solves for a home price where the monthly total stays within that target. You can switch to Payment mode if you already have a home price and want the monthly breakdown.
- Annual income converts to gross monthly income.
- A housing budget is set based on the style you choose.
- Total debt plus housing is checked against the debt to income limit.
- The calculator solves for a price that fits the payment target given down payment, rate, and term.
Frequently asked questions
A practical way to plan is to keep housing costs at a manageable share of gross monthly income, then make sure total debt plus housing stays under a reasonable debt to income cap. This tool does both and shows you the breakdown so you can adjust assumptions until it matches your real budget.
A larger down payment reduces the loan size, which usually lowers principal and interest. It can also reduce or remove PMI depending on the loan program and down payment percent. In many cases, lowering PMI plus lowering the loan size improves affordability more than people expect.
Most homeowners pay more than principal and interest. Taxes and insurance are common recurring costs and can be significant. Including them helps you avoid a surprise payment later. If you prefer a different assumption, simply edit the tax rate and insurance amount.
The best number is the one that fits your lifestyle. If you want room for saving, travel, childcare, or investments, choose the Conservative style. If you are comfortable stretching for a specific home, use Balanced or Aggressive, then double check your monthly cash flow and emergency savings plan.
More helpful tools
Quick links from HarvRealtor.com
Harv Balu. Bay Area REALTOR. Information on this page is an estimate for planning and is not lending advice. For loan approvals and exact numbers, contact your bank, lender, or loan officer.