Mortgage Calculator: How Much House Can You Actually Afford?
Most mortgage calculators give you a monthly payment and call it a day. That number is almost useless without context.
What you actually need to know before you buy:
- Total interest paid over the life of the loan — on a $350,000 30-year mortgage at 6.5%, you'll pay $446,000 in interest. That house costs $796,000.
- How a shorter term changes the picture — a 15-year mortgage at the same rate: monthly payment goes up $600, total interest drops by $240,000.
- What one extra payment per year does — on that same 30-year loan, one extra payment annually pays it off 4-5 years early and saves $60,000-80,000 in interest.
The Number Banks Don't Lead With
Your bank pre-approves you for the maximum you can borrow. That's not a recommendation — it's a limit. The question isn't what you qualify for; it's what payment leaves you with enough cash flow to actually live your life.
The general rule: housing costs (PITI — principal, interest, taxes, insurance) should be 28% or less of gross monthly income. If you're at 35-40%, you're house-poor on paper even if the bank says yes.
Points: Pay More Now or More Later?
Discount points let you buy down your interest rate — each point costs 1% of the loan and typically reduces your rate by 0.25%. Whether that makes sense depends entirely on your break-even timeline.
If you're paying $3,500 to save $45/month, you break even in 78 months. If you're confident you'll be in the house for 10+ years, that's smart math. If you might move in 4 years, you're paying to save someone else money.
Our mortgage calculator handles all of this — payment, amortization schedule, extra payment scenarios, and points break-even — in one place.
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Frequently Asked Questions
How much house can I afford if I make $75,000 per year?
Using the 28% rule, your housing costs (PITI) should be no more than $1,750 per month. This calculator shows you exactly which loan amounts and interest rates keep you at or below that threshold, so you can see what price range actually works for your budget—not just what the bank will lend you.
Should I pay for discount points on my mortgage?
It depends on your break-even timeline. If one point costs $3,500 and saves you $45/month, you break even in 78 months (6.5 years). This calculator computes your exact break-even point, so you can decide if you'll stay in the house long enough to make it worth paying upfront.
How much can I save by making one extra mortgage payment per year?
On a typical 30-year mortgage, one extra payment annually can pay off your loan 4-5 years early and save $60,000-80,000 in interest. This calculator shows you the exact payoff date and total interest savings based on your specific loan amount and rate.
What's the real difference between a 15-year and 30-year mortgage?
On a $350,000 mortgage at 6.5%, a 15-year loan costs about $600 more per month but saves roughly $240,000 in total interest. This calculator displays both the monthly payment impact and lifetime interest cost, so you can decide if the faster payoff is worth the higher payment.
This article is for informational purposes only. See our disclaimer.