Home Affordability Calculator
Estimate how much home you can afford. Enter your income, monthly debts, and down payment — we apply standard debt-to-income limits to suggest a price range.
Example: with Calculate by Income & debts · Gross annual income $90,000 · Monthly debt payments $500 · Down payment $40,000 → Home price you can afford: $372,243.
- Max monthly payment (P&I)$2,100
- Max loan amount$332,243
- Monthly tax, insurance & fees$0.00
Computed by the calculator below using its default values. Change any input to see your own numbers.
Home price split
How you compare
What you can afford vs. your county’s median home value
🏠 Get pre-qualified with a lender
Get quotesHow lenders judge affordability
Lenders use debt-to-income ratios: roughly 28% of gross income toward housing and 36% toward all debt are common limits. This tool finds the payment those rules allow, then works backward to a loan and price. It treats the budget as principal and interest, so once you add property tax and insurance your realistic price is a bit lower — a useful, conservative starting point.
How it’s calculated
Max payment = lesser of (front-end % of income) and (back-end % − monthly debts). Max loan works backward from that payment; price = loan + down payment. Annual property tax, insurance, HOA, and (if you opt in) PMI are converted to monthly amounts and subtracted from the allowed payment before sizing the loan; preset DTI options apply 28/36 (conventional), 31/43 (FHA), 29/41 (USDA guaranteed loan), or a back-end-only limit (VA 41% or a chosen 10–50%), and in fixed-budget mode the monthly budget (less tax, insurance, HOA, and maintenance) is used directly as the P&I payment. PMI defaults to off (down payment 20%+): switch "Apply PMI to affordability?" to yes if your down payment will be under 20% so the estimate accounts for that added monthly cost.
Results update as you type and are estimates, not professional advice — verify important decisions with a qualified professional.
Common mistakes
- Treating the maximum as a comfortable budget.
- Forgetting taxes and insurance lower real affordability.
Frequently asked questions
What are the 28/36 rules?
Guidelines that cap housing at ~28% of gross income and total debt at ~36%. Some loan programs allow higher.
Does this include taxes and insurance?
The payment is principal and interest. Property tax, insurance, and HOA reduce what you can actually afford, so treat the result as a ceiling.
Should I borrow the maximum?
Often no. Borrowing below your limit leaves room for savings, emergencies, and lifestyle.
Do I need to pay PMI?
Conventional loans generally require private mortgage insurance when your down payment is below 20% of the home price. Enter an annual PMI estimate and set "Apply PMI to affordability?" to yes to include it in your monthly housing cost; leave it at no once you reach 20% down, since PMI usually drops off at that point.