Home Purchase Affordability Calculator

This calculator allows a potential home buyer to quickly and easily determine whether the monthly payments on a given home will be affordable on their income.

Yearly Income:
Down Payment:
Home Price:
Interest Rate:
Property Tax Rate:
Loan Term (Years):
Insurance (Yearly):
Monthly Payment (PITI):
Percent of Income:


The typical standard for housing payments to be considered affordable is that they not exceed 30% of a one's gross income. This calculator determines the total monthly payment on principal, interest, taxes, and insurance (PITI) for a fixed-rate mortgage and compares it to 30% of the given income. Payments equaling 30% or less of income are labeled as affordable.

Note that if the down payment is less than 20%, the borrower may also be obligated to pay private mortgage insurance (PMI), which is not included in the above calculation. The federal income tax deduction is also not included, since this "benefit" is typically not a factor in determining affordability.