Home Affordability Calculator Zillow

Home affordability is a critical factor when considering a home purchase. Our Zillow-inspired calculator helps you understand your financial capabilities and make informed decisions.

1. Enter your monthly income.
2. Specify the loan amount you’re considering.
3. Choose your preferred loan term.
4. Input the current interest rate.
5. Click ‘Calculate’ to see your results.

The calculator uses the following formula to estimate your monthly mortgage payment:

M = P [ i(1 + i)^n ] / [ (1 + i)^n -- 1 ]

Where:

• M is your monthly mortgage payment,
• P is your principal loan amount,
• i is your monthly interest rate,
• n is the number of months in the loan term.

Average Mortgage Rates (2020-2021)

Year	Average Rate
2020	2.84%
2021	3.10%

• Consider your debt-to-income ratio.
• Factor in property taxes and insurance.
• Think about future expenses and savings.

1. Start saving for a down payment.
2. Improve your credit score.
3. Research different loan types.

What is a good debt-to-income ratio?

A good debt-to-income ratio is typically below 43%, but ideally below 36%.

Learn more about debt-to-income ratio

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