First-Time Homebuyer Calculator: How Much House Can You Afford?

Buying your first home is exciting, but going in without running the numbers can lead to financial stress for years. Our first-time homebuyer toolkit helps you calculate the maximum home price you can afford based on your income, debts, savings, and target monthly payment so you can house-hunt with a clear budget.

Most financial advisors recommend spending no more than 28 percent of gross income on housing costs including mortgage payment, property taxes, insurance, and PMI. The calculator applies this rule plus the 36 percent total debt ratio guideline to give you a realistic price range that keeps you financially comfortable.

First-time buyers often qualify for FHA loans with as little as 3.5 percent down or conventional loans with 3 percent down through special programs. Use our down payment calculator to see how different down payment amounts affect your monthly payment, then run the closing cost calculator to budget for the cash you need at settlement.