Can I afford this house?
One set of numbers, four answers: your monthly payment, what lenders will see in your debt, the cash you need to close, and whether buying beats renting. Change anything and every answer updates.
At these numbers the purchase is beyond what standard lending guidelines support.
- Monthly housing payment
- $2,567
- Most you can afford
- $368,410
- Debt-to-income
- 36.8%
- Cash left after closing
- $18,931
- The price is above the $368,410 the 28/36 limits allow with this down payment.
Step 1
Is the price within budget?
The 28/36 limits allow up to $368,410 with this down payment. This house is $400,000.
- Principal and interest
- $2,076
- Property tax
- $367
- Insurance
- $125
- Total per month
- $2,567
Step 2
What will lenders see in your debt?
Housing takes 30.8% of your gross income and all debt takes 36.8%.
- Housing only (front-end)
- 30.8% · Acceptable
- All debt (back-end)
- 36.8% · Acceptable
At or under the 43% back-end ratio used as the FHA baseline.
Open the debt-to-income calculator →Step 3
Do you have the cash to close?
Yes: you would keep $18,931 after closing.
- Down payment
- $80,000
- Estimated closing costs
- $13,368
- 3 months of payments in reserve
- $7,702
- Total cash needed
- $101,069
Step 4
Is buying better than renting?
Buying only wins after year 14; at 7 years renting costs less.
- Net cost to buy (7 yr)
- $182,699
- Net cost to rent (7 yr)
- $147,957
- Break-even year
- Year 14
Compare scenarios
Change the price, down payment or rate, press “Save scenario”, and compare up to four side by side. They stay in this browser only.
How the verdict is decided
- Within your budget: the price is at most 90% of the most you can afford, housing is under 28% of income, all debt is under 36%, and your cash covers the down payment, closing costs and 3 months of reserves.
- Possible, but tight: you are inside the lender’s ceiling (43% total debt, price at or under the maximum) but at least one guideline above is stretched or you are short on cash.
- Over budget: the price is above the maximum the 28/36 limits allow, or total debt is above 43%.
The calculations reuse the same tested pieces as our affordability, debt-to-income, closing-cost and rent-versus-buy calculators, so the numbers match those pages. See how we test and verify and the public corrections log.
Frequently asked questions
What does “afford” mean here?
It means the purchase fits standard lender guidelines: housing no more than about 28% of gross monthly income, and housing plus all other debt no more than about 36%. Many lenders approve up to 43% with strong credit or savings, so the tool calls anything above 36% “tight” and anything above 43% “over budget”.
How much cash do I need?
The down payment, plus estimated closing costs, plus 3 months of housing payments kept in reserve. Closing costs here use national-average assumptions; your lender’s Loan Estimate is the only binding figure. The 3-month reserve is this tool’s assumption, not a universal lender rule.
Why does a small down payment cost more each month?
Below 20% down, lenders usually require mortgage insurance. The tool adds 0.8% of the loan per year until the down payment reaches 20%. Your actual rate depends on credit score and loan type.
How does the rent-versus-buy answer work?
It compares the total cost of buying and of renting year by year, using the same simulation as the rent-versus-buy calculator. Buying includes mortgage payments, property tax, insurance, 1.5% a year for maintenance and 6% to sell, with the home growing 3% a year. Renting assumes rent rises 3% a year and the cash you did not spend on the house earns 7% a year.
Is my information sent anywhere?
No. Everything is calculated in your browser. Saved scenarios stay in this browser’s local storage, and the “Copy link” button puts your numbers in the web address so you can share or bookmark them.
Is this financial advice?
No. It is an estimate built on stated assumptions, and a lender, a housing counsellor or an advisor can see details that no calculator can. Treat the verdict as a reason to look closer, not a decision.