Forgetting maintenance
Roughly 1% of value per year, averaged. It is not optional; it is deferred until it isn't.
Home Purchase Calculator
Monthly ownership cost, cash to close, and the income it usually needs.
Assumptions · Purchase
Percent of purchase price
Assumptions · Ownership costs
Enter 0 if the property has no association
Analysis
Monthly ownership cost
$3,147
- Cash to closeDown payment plus closing costs
- $95,625
- Principal and interest
- $2,205
- Taxes, insurance and dues
- $692
- Maintenance reserve
- $250
- Mortgage insurance
- $0
- Income this usually needsAt roughly 31% of gross income
- $121,815
Your analysis is complete.
These are assumptions, not verified facts about a property.
Add an address to carry these numbers into Property Intelligence™ — the full advisory product, with evidence, documents and next steps.
Ask a questionAbout this calculator
- What it is
- A home purchase calculator that shows the full monthly cost of ownership, the cash required to close, and the income the purchase generally needs.
- Who it is for
- Buyers deciding whether a specific price is affordable, and first-time buyers setting a budget before they shop.
- The problem it solves
- Pre-approval sets a ceiling, not a budget. Buyers routinely discover the true monthly cost — with taxes, insurance and maintenance — only after an offer is accepted.
The formula
Monthly cost = P&I + taxes + insurance + HOA + maintenance reserve
Cash to close is the down payment plus closing costs, typically 2% to 5% of the price, plus prepaid taxes and insurance. A common affordability test keeps total housing cost near 28% of gross monthly income and all debt payments under about 36%.
How to use it
01
Price the loan
Compute principal and interest from price, down payment, rate and term.
02
Add ownership costs
Add annual taxes and insurance divided by 12, HOA dues, and a maintenance reserve of roughly 1% of value per year.
03
Compute cash to close
Add the down payment to closing costs and prepaid escrow items.
04
Test affordability
Compare the monthly total against 28% of gross monthly income, and confirm reserves survive the closing.
When to use it
- Setting a realistic price range before touring properties.
- Checking whether an accepted offer still works after taxes and insurance quotes arrive.
- Comparing two properties whose prices are similar but whose tax bills are not.
Common mistakes
Spending the reserve on the down payment
Closing with nothing left is how a manageable repair becomes a crisis.
Using the listing's tax estimate
Reassessment on sale can raise the bill materially in many jurisdictions.
Questions people ask
How much house can I afford?
What you can carry, not what a lender approves. Keep total housing cost — principal, interest, taxes, insurance, dues and a maintenance reserve — near 28% of gross monthly income, and keep reserves intact after closing.
How much cash do I need to close?
The down payment plus 2% to 5% of the purchase price in closing costs, plus prepaid property taxes and insurance held in escrow.
Is a 20% down payment required?
No. Conventional loans go lower, and FHA and VA loans lower still. Below 20% conventional, expect mortgage insurance until the balance falls far enough.
What Property Intelligence™ adds
For a real address, Property Intelligence verifies the tax and assessment history, prices insurance against the actual structure, and states what the monthly total would be with the gaps named rather than filled in.
The next calculation
Calculator: Home Purchase Calculator