Mortgage from Rent Calculator

Find out how much home you can afford based on your current rent payment. Convert your monthly rent budget into an equivalent home purchase price.

Your Rent Budget

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yrs
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Annual rate

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Annual rate

Enter your rent and mortgage details, then click "Calculate" to see what home price you can afford.

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Pro Tip

Your rent budget is a starting point, but aim to keep your total housing cost (PITI + maintenance) at or below 28% of your gross income. If your rent is below that threshold, you have more buying power than you might think.

Compare Rent vs Buy →

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From Renter to Homeowner

If you are comfortable paying your current rent, you may be wondering what home price that rent payment could support as a mortgage. This calculator converts your rent budget into an estimated affordable home price, accounting for principal, interest, property taxes, and insurance.

Keep in mind that homeownership involves additional costs beyond the mortgage payment. Maintenance and repairs typically cost 1-2% of the home value per year, and there may be HOA fees, PMI (if your down payment is less than 20%), and higher utility costs. Budget conservatively.

The amount of home you can afford varies dramatically with interest rates. Even a 1% change in rate can shift your purchasing power by 10-12%. Down payment size also matters: a larger down payment reduces your loan amount, lowering the monthly payment and potentially eliminating PMI.

Lenders typically recommend that total housing costs (PITI) not exceed 28% of your gross monthly income. While your rent budget provides a comfortable baseline, also consider your debt-to-income ratio and other financial obligations before purchasing.

Affordable Home Price from Rent

Home Price = Monthly Rent / [(1 − DP%) × PaymentFactor + (TaxRate + InsRate) / 12]

Where:

Monthly Rent = Your current rent (or target monthly budget)

DP% = Down payment percentage

PaymentFactor = r(1+r)^n / [(1+r)^n - 1], the P&I factor per dollar borrowed

TaxRate = Annual property tax rate

InsRate = Annual homeowners insurance rate

Example

$2,000/month rent, 6.75% rate, 30 years, 10% down:

  • • Payment factor: 0.006488 per dollar/month
  • • Monthly rate factor: 0.90 x 0.006488 + (0.012 + 0.005) / 12 = 0.007256
  • • Affordable price: $2,000 / 0.007256 = ~$275,600
  • • Loan amount: $275,600 x 90% = $248,040
  • • Down payment: $275,600 x 10% = $27,560

Frequently Asked Questions

Can I really afford a mortgage equal to my rent?
Your mortgage payment may be similar to your rent, but homeownership has additional costs: maintenance (1-2% of home value/year), higher utilities, possible HOA fees, and PMI. Budget for these when deciding if the monthly cost is truly affordable.
What about PMI?
If your down payment is less than 20%, you will likely need Private Mortgage Insurance (PMI), which adds 0.5-1% of the loan amount annually. This calculator does not include PMI, so your actual monthly cost may be higher with a small down payment.
Should I buy or continue renting?
Consider how long you plan to stay (buying is usually better if you stay 5+ years), your financial stability, local market conditions, and whether you can handle unexpected repair costs. Use our Rent vs Buy calculator for a detailed comparison.
How much should I save for a down payment?
While 20% down avoids PMI, many programs allow 3-5% down (conventional) or even 0% down (VA, USDA). However, a larger down payment reduces your monthly payment and total interest. Save at least 3-5% plus 2-5% for closing costs.