How much house can you afford?

How to calculate affordability

This calculator lets you estimate affordability from your annual income, monthly debts, and down payment — or from a target monthly payment. Advanced options let you dial in specific property taxes, homeowner's insurance, PMI, and HOA dues for a more accurate estimate. Here's what each line item means.

Annual income

The total money earned for the year before taxes and deductions — typically found on your W2. If you have a co-borrower contributing to the mortgage, combine both incomes.

Total monthly debts

Recurring monthly expenses like car payments, minimum credit-card payments, or student loans. For example, a $250 car payment plus a $50 minimum credit-card payment is $300 in monthly debt.

Down payment

The cash you pay upfront. Most loans require at least 3% down. A 20% down payment is ideal — it lowers your monthly payment, avoids PMI, and increases affordability. On a $250,000 home, 3% is $7,500 and 20% is $50,000.

Debt-to-income ratio (DTI)

Your total monthly debt payments divided by gross monthly income, shown as a percentage. Lenders use it to gauge your ability to manage payments. This calculator defaults to a 36% front-end / 43% back-end ratio.

Interest rate

What a lender charges to borrow, expressed as an annual percentage of the loan balance. This calculator uses a current Florida-area average by default; your actual rate varies with credit score and down payment.

Loan term

How long you agree to repay the loan. The most common is 30 years (360 months), but 15- and 20-year terms are common too. You can edit the term in the advanced options.

Property tax

Annual tax based on the assessed value of the home, varying by county and municipality. Florida's statewide effective average is roughly 0.9%, but it ranges by county. Use the property tax calculator above for a county-specific estimate.

Homeowner's insurance (HOI)

Property insurance covering your residence, typically required by lenders. Florida premiums run well above the national average — budget carefully and get a real quote before making an offer. Editable in the advanced options.

Private mortgage insurance (PMI)

Usually required when you put less than 20% down. PMI protects the lender if you default, and is added to your monthly payment until you reach 20% equity. Toggle it on or off in the advanced options.

Homeowner's Association (HOA) dues

Monthly fees in many condo and planned communities that maintain shared areas and enforce rules. In Florida, some communities also add a CDD (Community Development District) assessment. Both affect affordability.