Mortgage Payment Calculator How Much Can I Afford

Determining how much you can afford for a mortgage is a crucial step in your home buying journey. Our mortgage payment calculator helps you understand your affordability and make informed decisions.

1. Enter your monthly income and monthly debt.
2. Specify your down payment percentage and interest rate.
3. Click ‘Calculate’ to see your affordability and a visual representation.

The calculator uses the following formula to estimate your maximum affordable mortgage:

M = (I - D) * (1 - (r / (1 + r)^n)) / r

Where:

• M is the maximum affordable mortgage.
• I is your monthly income.
• D is your monthly debt.
• r is your interest rate (monthly).
• n is the number of months in a year (12).

Average Mortgage Rates (2010-2021)

Year	Average Rate

Median Home Prices (2010-2021)

Year	Median Price

• Consider your long-term financial goals and lifestyle.
• Factor in home maintenance and insurance costs.
• Remember, affordability is not just about the mortgage; it’s about the total cost of homeownership.

What is the 28/36 rule?

The 28/36 rule suggests that your mortgage payment should not exceed 28% of your gross monthly income, and your total debt (including mortgage, car loans, credit cards, etc.) should not exceed 36% of your gross monthly income.

For more information, see the Consumer Financial Protection Bureau’s guide on the 28/36 rule.