This calculator helps you decide whether selling your current home and buying a new one makes financial sense right now — and over the next decade. Enter your current home's equity and income alongside your target home's price and financing details to instantly see your cash position, monthly affordability, and long-term buying power. Adjust the growth and cost assumptions to stress-test optimistic or conservative scenarios.
Not financial advice. This tool is for informational purposes only. It does not constitute financial, mortgage, tax, or legal advice. Consult a qualified professional before making any real estate or financial decisions.
Your Current Home
What you're working with today
Buyer type
$
Estimated market value of your current home
$
How much of your home you own outright
yrs
Original loan length
yrs
Years left on loan
%
Annual interest rate on existing mortgage
No home to sell — your available savings and income growth are the foundation of your buying power. Use the Buying Power section below to model how your down payment builds over time.
Plain-English explanations of every term used in this calculator
Your Financial Inputs
Home Valuation
The estimated current market value of your home — what a buyer would likely pay today. The best sources are recent comparable sales (comps) in your neighborhood, a broker price opinion, or an online estimate as a starting point.
Equity
The portion of your home's value that you actually own, free of the mortgage. Calculated as market value minus your remaining loan balance. If your home is worth $350,000 and you owe $230,000, your equity is $120,000 — and that's the cash you'll ultimately walk away with at closing.
Loan Balance
The remaining amount you still owe on your current mortgage. You can find this on your monthly statement or servicer portal. The calculator accepts either equity or loan balance — use whichever number you know, and it converts automatically.
Expendable Cash
Savings you're prepared to put toward the purchase — money beyond what you need for everyday expenses and an emergency fund. This stacks on top of your sale proceeds to form your total buying power.
Monthly Take-Home Pay
Your actual after-tax monthly income — what hits your bank account, not your gross salary. If you're paid bi-weekly, multiply one paycheck by 26 and divide by 12. Include a spouse or partner's income here if you're qualifying jointly.
Financing & Monthly Costs
Down Payment
The upfront cash you apply toward the new home's purchase price. A larger down payment means a smaller loan, lower monthly payment, and — critically — avoiding PMI if you reach 20%. In this calculator, the down payment is whatever cash remains after subtracting all buying costs (lender fees, title fees, buyer transfer tax, prepaids at closing, escrow reserves, repairs, and moving expenses) from your total available funds.
P&I (Principal & Interest)
The core component of your monthly mortgage payment. Principal is the portion that reduces what you owe; interest is the cost of borrowing. On a 30-year fixed mortgage, this amount stays constant for the life of the loan — it's the most predictable part of your housing cost.
PMI — Private Mortgage Insurance
A monthly fee required by most lenders when your down payment is less than 20% of the purchase price. PMI protects the lender (not you) in case of default. It typically runs $50–$300/month and can usually be cancelled once you reach 20% equity through appreciation or loan paydown.
Interest Rate
The annual cost of borrowing money, expressed as a percentage of the loan balance. On a 30-year fixed mortgage, this rate is locked in at closing and never changes — a key advantage in a rising-rate environment. Even a 0.5% difference can change your monthly payment by $100–$200 on a $400k loan.
Annual Property Tax
A recurring tax charged by your local government based on the assessed value of your home. Rates vary widely — from under 0.5% in some states to over 2% in others. This calculator lets you enter the amount as either an annual dollar figure or a percentage of the purchase price.
Affordability Thresholds
Housing-to-Income Ratio
The percentage of your monthly take-home pay that goes toward total housing costs (mortgage P&I, property tax, and PMI). This is the single most important affordability metric — it determines whether the monthly payment is sustainable over the long term, not just whether you can technically qualify for the loan.
The 28% Rule
A widely used financial guideline suggesting your monthly housing costs should not exceed 28% of your take-home pay. Below this threshold, most households can comfortably cover housing alongside savings, debt repayment, and everyday expenses. This is the "comfort zone" marker shown in green throughout the calculator.
The 36% Ceiling
The upper boundary used by most lenders when qualifying borrowers. Exceeding 36% is a warning sign — you may still get approved, but the payment may leave little margin for unexpected costs, income disruption, or other financial goals. This is the threshold shown in amber/red throughout the calculator.
Transaction Costs
Sale Proceeds
The net cash you receive after selling your current home — your equity minus realtor commissions. This is the primary source of your down payment on the new home. If you owe more than the home is worth (underwater), sale proceeds would be zero and you'd need to cover the shortfall at closing.
Realtor Fees
Commission paid to real estate agents at the sale closing, historically 5–6% of the sale price and split between buyer's and seller's agents. Following the 2024 NAR settlement, commission structures are more negotiable than before — but 4–5% remains a reasonable estimate for planning purposes.
Lender Fees
Fees charged by your mortgage lender to originate and process the loan — including origination fee, appraisal, underwriting, credit report, and flood certification. Typically 1–1.5% of the loan amount. These are permanent transaction costs paid to the lender, separate from Buyer Title Fees (paid to title companies and settlement agents) and Prepaids at Closing (timing costs, not permanent fees).
Buyer Title Fees
All title-related costs on the buyer's side: the lender's title insurance policy (required), the owner's title insurance policy (optional but strongly recommended — protects your ownership rights against future claims), title search, settlement agent fee, and recording services. Typically 0.5–0.7% of the purchase price.
Buyer Transfer Tax
A one-time tax charged by some states and counties when the buyer takes title to a property. Rates vary widely — from 0% in most of the South and Midwest to 0.5–2%+ in states like Virginia, Maryland, New York, and Florida. Not to be confused with the seller's transfer tax, which some states assign entirely to the seller or split between both parties.
Prepaids at Closing
Two upfront cash costs at closing that are separate from your escrow account: (1) your first full year of homeowners insurance premium, paid to activate coverage on closing day, and (2) prepaid mortgage interest — daily interest owed from your closing date through the end of the month. Together these typically add $2,000–$4,000 to your cash needed at closing and are frequently overlooked in early planning.
Pre-Paid Escrow
Initial reserves deposited into your escrow account at closing — typically 2–6 months of property taxes and 2–3 months of homeowners insurance. Your lender holds these funds to ensure taxes and insurance are paid on your behalf throughout the year. This is distinct from your ongoing monthly escrow payment and from Prepaids at Closing.
Repair Costs
Pre-move-in repairs or improvements on the new home that you expect to pay out of pocket before or shortly after moving in. Including a realistic figure here prevents surprises — even "move-in ready" homes often need $3,000–$8,000 in early work.
Long-Term Projections
Buying Power
The maximum home price you could afford at a given point in time, given your projected income, available down payment, current interest rates, and affordability thresholds. As income grows and your cash pool compounds, buying power typically increases even if home prices rise — the Buying Power chart shows you by how much over the next decade.
Annual Cost Burden
The recurring yearly ownership costs beyond the fixed mortgage payment: property taxes, maintenance (estimated at 1% of home value per year), and homeowners insurance. Unlike P&I, these costs grow over time — taxes at their own rate, maintenance at its own rate, and insurance at the general Inflation Rate. The 10-year projection shows how much heavier this combined burden becomes.
Cash Pool Growth
How your available savings compound over time while you wait to buy. The model starts with your expendable cash, adds a percentage of your growing income as annual savings, and applies investment returns each year. This drives the "Down payment" line on the Buying Power chart — showing how your future down payment grows if you delay the purchase.