Your house will likely be your biggest purchase, so figuring out how much you can afford is a key step in the homebuying process. The good news is that coming up with a smart budget is pretty straightforward and not too time-consuming — especially with the Bankrate Home Affordability Calculator.
Calculator: Start by crunching the numbers
Begin your budget by figuring out how much you (and your partner or co-buyer, if applicable) earn each month. Include all revenue streams, from alimony and investment profits to rental earnings.

Next, list your estimated housing costs and your total down payment. Include annual property tax, homeowner’s insurance costs, estimated mortgage interest rate and the loan terms (or how long you want to pay off your mortgage). The popular choice is 30 years, but some people opt for shorter loan terms.

Lastly, tally up your expenses. This is all the money that goes out on a monthly basis. Be accurate about how much you spend because this is a big factor in how much you can reasonably afford to spend on a house.

Input these numbers into our Home Affordability Calculator to get a clear idea of your homebuying budget.