Home Affordability Calculator
A pre-approval is a ceiling, not a plan. Find the Eastside number you can actually carry.
Financing and Mortgage
What this article helps you decide
> Approvals are built on ratios; comfort on cash flow. Start from income and debt, keep a reserve (older Eastside homes deserve a fatter one), and you'll find the price that fits your life, not the lender's maximum.
Work through the decision in order
What to check
Input 1 - Gross annual household income (base as the conservative start; treat RSU/bonus separately - see M22). Input 2 - Monthly debt payments.
Article worksheet · browser private
Home Affordability Calculator
Use the worksheet without a form. Keep your notes in this browser, then bring the live facts into a Real Estate Review if the decision still matters.
Questions about Home Affordability Calculator
Clear answers first. If one question changes the deal, bring it into the review before you move money.
Q1Why shouldn't I just trust my pre-approval number?+
A pre-approval is a ratio-based ceiling, not a budget. It ignores your maintenance reserve, commute, and lifestyle cash flow. The comfortable number is usually below the approval — further below on an older home that needs a fatter reserve.
Q2Should I base affordability on my base salary or my total comp?+
Start from base as the conservative floor, then layer in documented bonus and RSU separately. Basing the whole budget on grant headlines is the classic overreach — a lender counts far less of it than your offer letter shows.
Q3What's the 36% figure in the formula?+
It's the back-end DTI guideline: total monthly debt including the new housing payment, up to about 36% of gross monthly income, as a planning ceiling. Some jumbo programs allow more, but planning to the guideline keeps you liquid.
Q4Does no state income tax change how much I can afford?+
It improves your take-home versus a high-tax state, which helps the lifestyle side of the budget. It doesn't change what a lender documents, so build the offer on documented income and let the tax advantage pad your cash flow.
Q5How much should I hold back for reserves and maintenance?+
Keep several months of full housing payment after closing (jumbo lenders often require 6–12), plus an annual maintenance reserve of about 1% on newer homes, 2–4% on older. Subtract both before you call a price affordable.
Q6My ceiling is lower than I hoped — what moves it most?+
Clearing a high-payment debt or getting more of your bonus and RSU documented. Both raise the number honestly; stretching the reserve just hides the risk.
Apply the article to the live decision.
Let's turn that ceiling into a real target price and neighborhood in a Real Estate Review.
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