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realtor.com know how much you can afford

Know how much you can afford

We'll help you estimate how much you can afford to spend on a home.

Calculate your buying power

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Total income before taxes for you and your household members.

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Payments you make for loans or other debt, but not living expenses like rent, groceries or utilities.

City or ZIP code you are searching in.

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Money that you can spend on the down payment and closing costs.

0% down for veterans and their spouses, no mortgage insurance required.

Next steps

Confirm your affordability with multiple lenders

Get pre-approved

Calculate your buying power

$

Total income before taxes for you and your household members.

$

Payments you make for loans or other debt, but not living expenses like rent, groceries or utilities.

Next steps

Confirm your affordability with multiple lenders

Get pre-approved

How affordability is calculated

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As you set out on your home search, it is important to know the following:

  • What kind of home you want and can afford
  • How much mortgage you can qualify for
  • How much you monthly payments will be
  • How much you need to save for a down payment

The most important factors that determine how much you can afford:

  • Your monthly payments which included house hold expenses, mortgage payment, home insurance, property taxes, auto loans and any other financial considerations.
  • How lenders determine what you can afford. Just like lenders, our Affordability calculator looks at your Debt-to-Income Ratio (DTI) to determine what home price you can afford.

Know these terms and how they work

Common terms

Borrower

A borrower is a person who takes out a loan from a lender. For a mortgage loan, the borrower often is also referred to as the mortgagor (and the bank or lender the mortgagee).

Conventional loans

A conventional loan is a type of mortgage that is not insured or guaranteed by the government.

Debt payments

Debt payments are payments you make to pay back the money you borrowed.

Gross monthly income

Gross monthly income is the total amount of money you earn in a month before taxes or deductions.

Lender

A lender is a financial institution that provides a loan directly to you.

Monthly Budgets

A monthly budget is what you estimate your income and expenses are for a given month.

Mortgage affordability calculator

Use this tool to calculate the maximum monthly mortgage payment you'd qualify for and how much home you could afford.

Private mortgage insurance (PMI)

If your down payment is less than 20 percent of your home's purchase price, you may need to pay for mortgage insurance. You can get private mortgage insurance if you have a conventional loan, not an FHA or USDA loan. Rates for PMI vary but are generally cheaper than FHA rates for borrowers with good credit.

The Federal Housing Administration (FHA), FHA Loan

The Federal Housing Administration (FHA) is an agency of the U.S. government. An FHA loan is a mortgage loan that is issued by banks and other commercial lenders but guaranteed by the FHA against a borrower’s default. FHA loans make home ownership more possible for borrowers than it otherwise would be through conventional mortgage loans, because an FHA loan permits relatively low down payments, limits closing costs the borrower pays and is accessible to borrowers who have a relatively lower credit score. These features make an FHA loan particularly useful for many first-time homebuyers who have not yet saved enough for the amount of down payments that commercial lenders usually require for a conventional loan.

Veterans Affairs Department (VA), VA loan

The Veterans Affairs Department (VA) is an agency of the U.S. government. A VA loan is a mortgage loan that is available to current and former members of the military (and select military spouses), issued by banks and other commercial lenders but guaranteed by the VA against a borrower’s default. VA loans make home ownership more possible for borrowers than it otherwise would be through conventional mortgage loans, primarily because a VA loan does not require any down payment. Additionally, interest rates offered for VA loans often turn out to be lower than those offered for conventional loans.

IMPORTANT. The affordability calculator provides only a general estimate, is intended for initial information purposes only, and your use of the affordability calculator is subject to our Terms of Use.

The questions asked, information you submit and assumptions made here, and the availability and output of the calculator (including any home or monthly payment estimate), (i) do not constitute a loan application, offer or solicitation, nor an advertised amount regarding any of them, (ii) are not an assurance as to any loan approval or dis-approval, and (iii) are not intended as financial, legal or other professional advice.
The calculator and its output do not necessarily apply to all loan types, and not everyone will necessarily be able to find a home at a purchase price, and a mortgage with payment levels, that fits their budget and meets their needs. It is highly recommended that you speak with a lender or loan professional of your choice about your mortgage loan needs and to help determine your home affordability. Realtor.com provides information and advertising services – learn more.

The information you submit is subject to our Privacy Policy. In particular, if you submit an inquiry in response to an ad in, or adjacent to, the calculator (e.g., “Get pre-approved by a lender”), the information you submit here may be provided to one or more mortgage professionals who may assist you with and/or contact you about your inquiry.