EZ1 Calculators
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Home Affordability Calculator

Instantly calculate the maximum loan amount and home price you can afford—free and immediate.

  • Free
  • No sign-up
  • Instant results

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How to use it

  1. Enter your annual income.
  2. Add any other monthly debt payments.
  3. Set your down‑payment, interest rate, loan term, and front‑end DTI ratio.
  4. View the maximum loan amount and home price.

This tool takes your yearly earnings, existing monthly debts, down‑payment, mortgage rate, loan length and the standard 28% front‑end DTI limit to tell you the biggest loan you could qualify for and the highest purchase price that loan supports. Knowing the ceiling helps you shop within realistic boundaries, avoid over‑extending, and negotiate with confidence. The Maximum Loan Amount is the principal you can borrow; the Maximum Home Price adds your down‑payment to that loan. Use the results to compare listings, plan savings, or discuss options with a lender. Remember, the calculation ignores taxes, insurance and HOA fees, so factor those in separately for a complete budget.

Pro tips

  • Round income to the nearest thousand for a quick snapshot.
  • Leave a buffer above the 28% limit for unexpected expenses.
  • Enter the exact interest rate you expect; a 0.5% change shifts the loan amount noticeably.
  • Ensure your down‑payment covers the desired price; the calculator assumes it’s applied directly.

Real-life examples

  • First‑time buyer checking if a $350k condo fits their budget.
  • Investor estimating the largest property they can finance with current rental income.
  • Homeowner planning a refinance to see how much equity can be borrowed for renovations.

Case study

Maria earns $95,000 a year, has $500 in monthly debt, and can put $30,000 down. Using a 4.75% rate and 30‑year term, the calculator shows she can afford a $380,000 loan and a $410,000 home, keeping her housing cost at the 28% front‑end limit.

Frequently asked questions

What does the front‑end DTI ratio represent?
It caps the portion of your monthly gross income that can go toward housing costs—principal and interest—at 28%.
Why are property taxes and insurance left out?
They vary widely; the calculator provides a baseline loan limit, and you should add those costs to your personal budget.
Can I use a different DTI percentage?
Yes, you can adjust the front‑end DTI input to reflect a higher or lower comfort level, but 28% is the industry standard for affordability.
How does my down‑payment affect the maximum home price?
The down‑payment is added to the maximum loan amount; a larger down‑payment raises the total price you can afford.
Is this calculator reliable for adjustable‑rate mortgages?
It uses the nominal annual rate you enter, so it works for ARMs as long as you input the current rate, but future rate changes aren’t reflected.