Mortgage Calculator · Car Payment Scenario

Can I Afford a House With a Car Payment?

Your car payment is buying you a smaller house. A $600/month car loan at today's rates costs you roughly $120,000 in home buying power. That's not a metaphor. It's the math. Use the calculator to see your exact number, then see the full breakdown below.

Income & Debts

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Loan & Down Payment

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Ongoing Housing Costs

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Lending Assumptions

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Affordability Estimate

You can afford a home around

$278,000

Based on your current income, debt, and housing cost assumptions.

Comfortable target$278K
Stretch maximumup to $306K

Monthly Housing Budget

$2,100

Comfortable

This appears to be within a comfortable borrowing range.

Estimated Loan Amount

$248,000

Estimated Cash Needed (Down + Closing)

$38,000

Estimates based on your inputs. Actual results may vary. Terms →

Calculation Breakdown

  • Estimated Principal & Interest$1,620
  • Estimated Property Taxes$280
  • Estimated Homeowner's Insurance$100
  • Estimated HOA$0
  • Estimated PMI$100
  • Front-End Ratio Used28.00%
  • Back-End Ratio Used36.00%

Save this scenario

Keep track of multiple affordability setups.

What your car payment is really costing you

Every $200/month in car payment removes roughly $40,000 from your maximum home price. Below is what that looks like across common car payment amounts: based on $90,000 income, 10% down, 6.4% rate, 43% back-end DTI limit.

Monthly car paymentReal-world carLost buying power
$0No car loan-
$250/moUsed Honda Accord-$50,000
$400/moNew Toyota Camry-$80,000
$600/moNew F-150 / Tesla Model 3-$120,000
$800/moLuxury SUV / truck-$160,000
$1,000/moHigh-end truck / EV-$200,000

Based on $90,000 gross income, 10% down payment, 6.4% 30-year fixed, 43% back-end DTI limit. Actual limits vary by lender and loan type.

The average new car payment in Q4 2025 was $772/month (Edmunds). 1 in 5 Americans is now paying $1,000+/month for their vehicle, a record high. At $772/month, that's roughly $154,000 in lost home buying power.

Can you afford the home you want? (by income and car payment)

Find your income row and car payment column. Green = comfortable qualifier. Amber = at the limit. Red = likely declined at that price.

 
No car
$300/mo
$500/mo
$700/mo
$1,000/mo
$70k income
$280k
$240k
$200k
$160k
$100k
$90k income
$380k
$320k
$270k
$220k
$145k
$110k income
$460k
$400k
$340k
$275k
$185k
$130k income
$545k
$475k
$405k
$330k
$220k
$150k income
$630k
$550k
$470k
$385k
$260k

Based on 6.4% rate, 10% down, 43% back-end DTI, no other debts besides car.

Car leases count too (even with 2 payments left)

Leases always count against your DTI

Unlike installment loans, which can be excluded if ≤10 payments remain, car leases are counted in DTI for the full remaining term, no matter what. Even if you have 2 lease payments left, the full monthly obligation counts. This surprises many buyers who assume a nearly-expired lease is irrelevant. If you're within 6 months of lease end, consider whether delaying your home purchase until after the lease expires changes your qualifying position.

Want to know if you should pay off the car first?

What to calculate next

Estimates based on your inputs. Actual results may vary. Terms →