GuideStead.

First home affordability calculator

Estimate your full monthly cost of owning a home, then see how it compares to your income using a common lender guideline.

How to use this: Enter the home price, your down payment, and the mortgage terms you're considering. Then add property tax, insurance, and any HOA dues. Add your income and other debt payments to see your estimated debt-to-income ratios.
Home & loan
Most common are 15 or 30 years, but enter whatever your loan uses (e.g. 10, 20, 25, 40).
Ongoing costs
These vary by location and policy, so enter your own numbers rather than a modeled estimate.
Use your local rate. This applies it to the home price, not the assessed value your tax bill actually uses — those can differ, especially right after a sale.
Private mortgage insurance is typically required on conventional loans with less than 20% down. Only applied here if your down payment above is below 20%.
Income & other debts
Used only for the debt-to-income check below — doesn't affect the cost breakdown above.
Car loans, student loans, credit card minimums, and similar — not including the mortgage itself.
Estimated monthly housing cost
Loan amountHome price − down payment
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Principal & interest
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Property tax
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Homeowners insurance
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PMI
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HOA dues
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Total monthly housing cost
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Front-end ratio
Housing cost ÷ gross monthly income
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Lenders often like to see this at 28% or below. Some loans (like FHA) allow more — this is a helpful guideline, not a hard rule. Why it varies.
Back-end ratio
Housing cost + other debts ÷ gross monthly income
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Lenders often like to see this at 36% or below. Some loans allow more, especially with strong credit — this is a helpful guideline, not a hard rule. Why it varies.
The values you enter here are saved in this browser on this device so this calculator remembers them next time. No account or login; use Start fresh to clear.
Educational estimate, not financial advice. This estimates recurring monthly housing cost only: loan principal & interest, property tax, homeowners insurance, PMI, and HOA dues, all as flat entered rates or amounts. It does not include closing costs, maintenance or repairs, utilities, or the loan-approval process itself — actual lender approval depends on your credit, reserves, and the loan program, and can differ from the guideline shown above. Property tax is applied to the entered purchase price, not an assessed value, which can differ. PMI is shown as a flat ongoing monthly cost and is not modeled to reduce or cancel as you build equity over time. For an actual purchase, confirm real numbers with a lender. Full disclaimer.

Why the mortgage payment isn't the real number

The principal-and-interest figure a lender quotes is only part of what you'll pay each month. Property tax, homeowners insurance, PMI (if you put down less than 20%), and any HOA dues stack on top — often enough to move a payment from comfortable to stretched. This calculator adds up every recurring monthly housing cost so you're looking at the real number before committing to a 30-year loan.

How to read the two ratios

  • Front-end ratio is total housing cost as a share of gross monthly income. Lenders often like this at 28% or below. Above it, you can usually still qualify — especially with strong credit or an FHA loan — but with less cushion.
  • Back-end ratio adds your other debts (car, student loans, credit cards) to housing, against the same income. The common guideline is 36% or below, and this is the number most lenders weigh most heavily.

Neither ratio is pass/fail — they're starting points. Strong credit, savings, and stable income routinely qualify borrowers above both.

What this doesn't cover

Closing costs (typically 2–5% of the loan), ongoing maintenance (a common rule of thumb is ~1% of the home's value per year), utilities, and moving costs. PMI is held flat for the whole period as a conservative estimate; in reality it drops off once you reach 20% equity, so your long-run cost is usually lower than shown.

FAQ

Why is property tax based on the purchase price?

It's a conservative starting point; your first assessed value can differ, so check your local assessor for a sharper first-year estimate.

What if I put down 20% or more?

PMI simply won't appear — the tool only adds it below 20% down.

Can I model a 15-year loan?

Yes — set the term to 15. The monthly payment rises but total interest falls, and the ratios update accordingly.