How much house can I afford?

Tell us how much you make and where you want to buy a home, and we can tell you how long it will take for you to save enough.


How long before you can buy a home?

Tell us how much you make and where you want to buy a home, and we can tell you how long it will take for you to save enough.

Please input your gross (pre-tax) monthly income.
How much money can you save each year, as a % of your gross income. Assuming a 20% savings rate
Assuming a $200 Monthly taxes

We used average data from your state
We used an average cost of 4.5%
Which is typical for a 30 year mortgage

It will take you

3.46 years

to save for a home.

Let's break it down:
Your monthly income is: $3,188
Most mortgage companies will not let your monthly payment exceed 35% of your income. Based on your income, here's the monthly mortgage payment you would be able to afford. $1115.80
The total amount you can borrow over 30 years is: $197,230
And the amount of the home you want to buy is: $132,000
So the amount you need to save for the down payment and closing costs is: $26,480
If you're saving 20% of your income, it will take you this long to save the $26,480: 3.46 years

As tempting as it is to fantasize about your dream home, you’re better off starting your house hunt in reality. Finding out what you can afford before you start looking for a new home will help you identify which houses are within your price range.

Not only does this keep your expectations in check, it also helps your real estate agent identify properties that suit your lifestyle and your budget. Some sellers and agents will ask for a preapproval letter from a lender before they’ll set up showings with you, so getting serious about the numbers will literally get you in the door.

What interest rates will you receive?

Aside from your mortgage principal, interest rates play a major factor in how much you’ll pay monthly for your house. Using an online calculator such as this one from MagnifyMoney can help you estimate what rate you can expect to pay based on your credit profile, income, and where you want to buy. You can also speak with different lenders to determine which companies offer the most competitive rates.

How will your down payment affect your budget?

You’ll likely need to put down a minimum of 3% on the house. But the larger your down payment, the better your chances of securing a competitive interest rate. Play around with different down payment amounts in the calculator to gauge how your interest rate and monthly payments may change. What you see could sway you toward a smaller property so you can afford to put down a larger percentage, or it may help you realize a larger home is within your budget after all.

How to use this calculator

To get the best estimate of how much house you can afford, you’ll need a few pieces of information handy:

  • Monthly income
  • Location where you want to buy
  • Down payment amount
  • Credit score
  • Estimated property taxes

These data points can help you get an idea of how large a mortgage you might receive. But the final number will depend on other factors as well, including your debt-to-income ratio and how much you currently pay in rent. If a lender thinks your mortgage payments will be too much of an increase from what you pay now, they may not approve the amount requested. This is known as payment shock. The debt-to-income ratio can also impact whether your loan will be approved and how much interest you’ll pay.

You’ll also want to consider any impending life changes. If you’re getting married, planning to start a family, changing career fields, or taking any other major life steps, factor that into how much mortgage you can afford. Any one of those instances can change your finances dramatically, so you need to account for how that will impact your ability to make your monthly payments.

Run the numbers

Calculating how much you can afford to borrow for a home can be sobering, but it’s also liberating. Once you fully understand your potential borrowing power, you can refine your house search to what you know you’ll be able to buy, and your vision of a dream home can become a reality.