Use this calculator to estimate the maximum home price you might be able to afford based on your income, debts, and other housing-related expenses. This tool helps you understand your purchasing power before you start your home search.
Your Affordability Estimate:
Enter your details and click "Calculate Affordability" to see your estimate.
function calculateAffordability() {
var annualIncome = parseFloat(document.getElementById('annualIncome').value);
var monthlyDebts = parseFloat(document.getElementById('monthlyDebts').value);
var downPayment = parseFloat(document.getElementById('downPayment').value);
var mortgageRate = parseFloat(document.getElementById('mortgageRate').value);
var loanTerm = parseFloat(document.getElementById('loanTerm').value);
var annualPropertyTaxes = parseFloat(document.getElementById('annualPropertyTaxes').value);
var annualHomeInsurance = parseFloat(document.getElementById('annualHomeInsurance').value);
var monthlyHoa = parseFloat(document.getElementById('monthlyHoa').value);
var resultDiv = document.getElementById('result');
resultDiv.innerHTML = "; // Clear previous results
// Input validation
if (isNaN(annualIncome) || annualIncome < 0 ||
isNaN(monthlyDebts) || monthlyDebts < 0 ||
isNaN(downPayment) || downPayment < 0 ||
isNaN(mortgageRate) || mortgageRate <= 0 ||
isNaN(loanTerm) || loanTerm <= 0 ||
isNaN(annualPropertyTaxes) || annualPropertyTaxes < 0 ||
isNaN(annualHomeInsurance) || annualHomeInsurance < 0 ||
isNaN(monthlyHoa) || monthlyHoa < 0) {
resultDiv.innerHTML = 'Please enter valid positive numbers for all fields.';
return;
}
var monthlyGrossIncome = annualIncome / 12;
var monthlyPropertyTaxes = annualPropertyTaxes / 12;
var monthlyHomeInsurance = annualHomeInsurance / 12;
// Common DTI limits: 36% for total debt, 28% for housing alone (PITI+HOA)
// We'll use the 36% total DTI as the primary constraint for maximum total debt,
// then subtract other debts to find the maximum housing payment.
var maxTotalMonthlyDebtAllowed = monthlyGrossIncome * 0.36; // 36% DTI limit
var maxMonthlyHousingPaymentAllowed = maxTotalMonthlyDebtAllowed – monthlyDebts;
if (maxMonthlyHousingPaymentAllowed <= 0) {
resultDiv.innerHTML = 'Your current monthly debt payments are too high relative to your income to afford additional housing costs. Consider reducing debts or increasing income.';
return;
}
// Calculate maximum P&I portion
var maxMonthlyPI = maxMonthlyHousingPaymentAllowed – monthlyPropertyTaxes – monthlyHomeInsurance – monthlyHoa;
if (maxMonthlyPI <= 0) {
resultDiv.innerHTML = 'Your estimated property taxes, insurance, and HOA fees already exceed your affordable monthly housing payment. This suggests a very low or zero affordable loan amount.';
return;
}
// Mortgage calculation (reverse P&I to find principal)
var monthlyRate = (mortgageRate / 100) / 12;
var numberOfPayments = loanTerm * 12;
// Formula for Principal (P) given Monthly Payment (M):
// P = M * [ (1 + i)^n – 1 ] / [ i(1 + i)^n ]
var maxLoanAmount = maxMonthlyPI * (Math.pow(1 + monthlyRate, numberOfPayments) – 1) / (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments));
var maxAffordableHomePrice = maxLoanAmount + downPayment;
// Display results
resultDiv.innerHTML += 'Maximum Affordable Home Price: $' + maxAffordableHomePrice.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ";
resultDiv.innerHTML += 'Maximum Estimated Monthly Housing Payment (PITI+HOA): $' + maxMonthlyHousingPaymentAllowed.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ";
resultDiv.innerHTML += '(This includes the following estimated monthly costs based on your inputs):';
resultDiv.innerHTML += ' Estimated Monthly Principal & Interest (P&I): $' + maxMonthlyPI.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ";
resultDiv.innerHTML += ' Estimated Monthly Property Taxes: $' + monthlyPropertyTaxes.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ";
resultDiv.innerHTML += ' Estimated Monthly Homeowner\'s Insurance: $' + monthlyHomeInsurance.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ";
resultDiv.innerHTML += ' Estimated Monthly HOA Fees: $' + monthlyHoa.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ";
}
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padding: 25px;
border-radius: 10px;
box-shadow: 0 4px 12px rgba(0, 0, 0, 0.1);
max-width: 600px;
margin: 30px auto;
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width: 100%;
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border-color: #007bff;
outline: none;
box-shadow: 0 0 5px rgba(0, 123, 255, 0.2);
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width: 100%;
margin-top: 25px;
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}
.calculator-container button:hover {
background-color: #0056b3;
transform: translateY(-1px);
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.calc-result-box {
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border-radius: 8px;
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color: #003366;
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Understanding Your Home Affordability with Redfin's Approach
Buying a home is one of the biggest financial decisions you'll make, and understanding what you can truly afford is the crucial first step. A "Redfin Home Affordability Calculator" helps you estimate your purchasing power by considering key financial factors, much like lenders and real estate platforms do.
What is Home Affordability?
Home affordability isn't just about the sticker price of a house; it's about your ability to comfortably manage all the associated monthly costs without straining your finances. This includes not only the mortgage payment but also property taxes, homeowner's insurance, and potential homeowner's association (HOA) fees.
Key Factors Influencing Your Affordability
Annual Household Income: This is the foundation of your affordability. Lenders typically look at your gross income (before taxes) to determine how much you can borrow.
Other Monthly Debt Payments: Your existing debts, such as car loans, student loans, and credit card payments, directly impact your ability to take on new housing debt. Lenders use a "Debt-to-Income (DTI) Ratio" to assess this.
Available Down Payment: A larger down payment reduces the amount you need to borrow, which in turn lowers your monthly mortgage principal and interest payments. It can also help you secure a better interest rate and avoid private mortgage insurance (PMI).
Estimated Mortgage APR (%): The Annual Percentage Rate (APR) on your mortgage significantly affects your monthly payment. Even a small difference in rate can mean thousands of dollars over the life of the loan.
Desired Loan Term (Years): The length of your mortgage (e.g., 15, 20, or 30 years) impacts your monthly payment. A shorter term means higher monthly payments but less interest paid overall.
Estimated Annual Property Taxes: These are taxes levied by your local government based on your home's value. They are a non-negotiable part of homeownership and are typically included in your monthly housing payment (escrow).
Estimated Annual Homeowner's Insurance: This protects your home from damage and liability. Like property taxes, it's usually required by lenders and factored into your monthly housing costs.
Estimated Monthly HOA Fees: If you're buying into a community with shared amenities (condo, townhouse, or some single-family homes), you'll likely pay monthly HOA fees. These cover maintenance of common areas and services.
The Debt-to-Income (DTI) Ratio Explained
Lenders use the DTI ratio as a critical measure of your ability to manage monthly payments and repay debts. It's calculated by dividing your total monthly debt payments (including your estimated new housing payment) by your gross monthly income. Most lenders prefer a DTI ratio of 36% or lower, though some programs allow up to 43% or even higher under certain conditions. Our calculator uses a common guideline to help you estimate your maximum affordable housing payment.
How to Use This Calculator
Simply input your financial details into the fields above. Be as accurate as possible with your income and existing debts. For estimated property taxes, insurance, and HOA fees, you can research typical costs in the areas you're considering. The calculator will then provide an estimate of the maximum home price you might be able to afford and a breakdown of the associated monthly housing costs.
Important Considerations
This is an estimate: This calculator provides a helpful guideline, but it's not a loan pre-approval. Your actual affordability will be determined by a mortgage lender who will conduct a thorough review of your finances.
Closing Costs: Remember that the home price doesn't include closing costs, which can range from 2% to 5% of the loan amount. Factor these into your savings.
Emergency Fund: Always ensure you have an emergency fund saved after your down payment and closing costs.
Future Expenses: Consider potential future expenses like home maintenance, utilities, and unexpected repairs.
By using this Redfin-style affordability calculator, you can gain a clearer picture of your financial standing and approach your home search with confidence and realistic expectations.