Home Affordability Calculator
What the bank says you can afford vs. what you can comfortably pay each month
Your Financial Snapshot
$6,250/month gross
After taxes and deductions
Car, student loans, credit cards
Tax: 1.1% | Insurance: 0.35%
What You Can Afford: Three Perspectives
The bank will lend you more than you should probably borrow. Here are three ways to think about it.
Bank Maximum
28% of gross income (front-end DTI)
$279,335
Maximum home price
Comfortable
25% of take-home pay
$199,525
Maximum home price
Stretch Budget
33% of take-home pay
$263,373
Maximum home price
Full Monthly Budget Breakdown
Based on the “Comfortable” home price of $199,525 - here's how your monthly budget looks.
The Hidden Costs of Homeownership
Most first-time buyers only think about the mortgage payment. Here's the full picture.
| Cost | Monthly | Annual |
|---|---|---|
| Mortgage (P&I) | $1,009 | $12,107 |
| Property Taxoften overlooked | $183 | $2,195 |
| Homeowner's Insuranceoften overlooked | $58 | $698 |
| Maintenance & Repairsoften overlooked | $166 | $1,995 |
| HOA Feesoften overlooked | $50 | $600 |
| Utilities (est.)often overlooked | $250 | $3,000 |
| Total | $1,716 | $20,595 |
Savings Needed to Buy
For the “Comfortable” home price of $199,525, here's what you need saved up.
5% Down Payment
$9,976 down on $199,525
You have enough saved! ($28,745 surplus)
192% saved
10% Down Payment
$19,953 down on $199,525
You have enough saved! ($18,769 surplus)
146% saved
20% Down Payment
$39,905 down on $199,525
You need $1,184 more
At ~$1,200/mo savings rate: 1 months
98% saved
Price-to-Income Ratio
A simple but powerful metric. How many years of income does the home cost?
2.7x
your annual income
The recommended guideline is 3x annual income or less. The average American home is approximately 4.5x median income. At $199,525, yours would be 2.7x.
Rent vs Buy: Quick Answer
Based on your income, the affordable home price, and your current rent.
Current Rent
$1,800
per month
Comfortable Ownership Cost
$1,716
per month (all-in)
At your income level and current rates, buying could make financial sense at this level.