Home Affordability Calculator
The full monthly cost of a home, including PMI, property tax and HOA, your front-end and back-end debt-to-income ratios, the cash you need to close, and a Home Readiness Score out of 100.
Your numbers
$
≈ $130,000/yr · $10,833/mo · $62.50/hr
Est. take-home $88,031/yr · $7,336/mo (32% to tax)
Monthly debt payments (excl. housing)$
$0$5,000+
Down payment available$
$0$400,000+
Home price$
$100,000$2,000,000+
Interest rate (%)%
3%12%
Property tax rate (%/yr)%
0.3%3.5%
Monthly HOA$
$0$1,000+
- Principal + Interest
- $2,794
- Property tax
- $500
- Home insurance
- $150
- PMI
- $280
- Total monthly housing cost
- $3,724
Front-end DTI
34.4%
Moderate
Back-end DTI
39.0%
High risk
- Down payment
- $80,000
- Closing costs (estimated)
- $12,500
- Cash to close (estimated)
- $92,500
Home Readiness Score
47of 100Getting Close
0406080100
Not Ready Yet0 to 39
Getting Close40 to 59
Almost There60 to 79
Ready to Buy80 to 100
DTI Health
15 / 25
Down Payment Strength
12 / 20
Emergency Fund Coverage
0 / 20
Credit Score
15 / 20
Debt Load
5 / 15
PMI of $280 a month applies until the loan balance reaches 80% of the home value.
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How this is calculated
We compute the full monthly cost of a home (PITI + PMI + HOA) and your debt-to-income ratios to gauge what you can comfortably afford.
The steps
- Monthly principal & interest from the standard amortization formula on the loan amount.
- Add property tax, insurance, PMI (if down payment < 20%), and HOA → total monthly payment.
- Front-end DTI = housing ÷ gross monthly income; back-end DTI = (housing + other debts) ÷ income.
- Estimate cash to close = down payment + closing costs.
Assumptions
- Default property-tax/insurance/PMI rates; 30-year loan unless changed.
- Lenders generally prefer back-end DTI ≤ ~43%.
Good to know
- Rates and fees vary by lender and location; a planning estimate, not a pre-approval.
Related resources
Educational disclaimer. Everything on WealthSerene.com is educational and is not investment advice. Projections and calculations are illustrative; actual results depend on market conditions, your situation and factors outside this tool’s scope. For a decision specific to your situation, consult a qualified financial professional. View full disclosures